Firm Quote
A firm quote represents a binding offer in the financial markets, displaying a price at which the market maker commits to trading.
Definition and Components
This type of quote signifies a bid and ask price, indicating the market maker's readiness to execute transactions for a specified amount.
Non-negotiability
A firm quote is immutable, presenting a definitive 'take it or leave it' proposition to potential traders.
Guarantee on Price and Volume
The quote assures that market makers are bound to fulfill trades at the stated prices and quantities, provided the quotes are firm.