The term quotes is understood as the determination of the exchange rate of foreign currencies, prices of goods and securities on the exchange, which is announced by the seller or buyer at the time of the purchase or sale. As a rule, quotations are provided by special bodies of the stock, currency or commodity exchange and are published in stock exchange bulletins informing about the exchange rate of securities, foreign currencies and wholesale prices of goods.
The quotation is announced for a specific period during which a transaction with securities is performed by this dealer in strict accordance with the established purchase and sale prices. Through quotes, the price of transactions that are concluded on the exchange is revealed and fixed. They also act as an analysis of market information that characterizes market conditions. Thus, the exchange quotation becomes a reference point when concluding contracts of both exchange and over-the-counter nature. As a result, exchange trading through quotes has the opposite effect on the market situation. The registration of prices on the exchange is carried out by a special quotation commission, which publishes the opening and closing prices of the session on the exchange, as well as the maximum and minimum price of the day. It follows from this that the quotation is a kind of mechanism for determining the price and fixing it in the course of each working day. In the course of exchange trading, the interaction of registered trading occurs, which leads to the mechanical appearance of the price. The transaction price is called the rate, which determines the current ratio between supply and demand. There are two types of quotes: direct and indirect. Direct quotation indicates the price of a unit of a trade object or the amount of national currency per unit of foreign currency. Indirect or reverse quotation is characterized by the amount of goods that can be purchased for a certain unit of money, or the amount of foreign currency in relation to a unit of national currency. Separately, the concept of a cross rate of quotations is derived, which determines the ratio of two currencies in relation to the rate of a third currency. In addition, the quotation can be bilateral or unilateral. In the first case, the bid and ask prices are announced, and in the second, only one of these prices.
