This article has been translated from English to Gen Z Slang.
An indicative quote is basically a price vibe check that's just for funsies. 😂
It's the kind of quote a trader might get from a market pro that could totally change before you seal the deal. 😅
This is your ballpark guesstimate of what a currency pair's price is vibing at right now, dished out by a market maker when you ask for it. 😎
Translation: the price they hit you with might not actually be ready for you to snag. 😏
The market maker ain't gotta stick to that quote. 🤷♂️
The glow up version of an indicative quote is a firm quote, which is like, totally guaranteed by the market maker. 🔒
Market pros might toss out an indicative quote if a trader hints they might trade but leaves 'em hanging on the deets, like how big of a trade it is. 🤔
So, traders use these quotes like, “hey, what's the vibe on the exchange rate for this FX deal?” ✨
Like, if someone asks for an indicative quote in EUR/USD, a market maker might hit 'em up with 1.1040/42. 👀
This means the vibe for the bid price is 1.1040 and the ask price is 1.1042. 🔍
But, real talk, the actual deal price or “firm quote” might switch up to 1.1042/44 without any commitment to the OG quote. 😬
An indicative quote can also go by “price indication” or just “indication“ if you wanna keep it chill. 😉