Indicative Quote
A non-binding price quote that shows an approximate market rate but cannot be traded on directly.
An indicative quote is an approximate price that is not guaranteed for execution. Executable quotes are firm and tradable; indicative quotes just show where the market is.
An indicative quote shows an approximate market price but isn't guaranteed for execution. It gives traders an idea of current pricing without committing the market maker to trade at that level. Executable quotes are firm and tradable.
How It Works
- Shows approximate current market price
- Not binding - cannot execute at this price
- Common during low liquidity or market closures
- Firm/executable quotes are needed to trade
Trading Tips
Check if quotes are indicative or executable
Spreads may differ between indicative and firm quotes
Weekend quotes are typically indicative
Indicative Quote Example
Say your screen shows EUR/USD at 1.0850 on a news feed while your broker fills you at 1.0854. The feed was indicative, a snapshot for information, not a tradable price. The 4-pip gap is the difference between watching and dealing.
How Traders Use Indicative Quote
Never plan entries off indicative prices from news sites or free charts. Trade only off your broker executable quote, and expect visible gaps between the two in fast markets.
Related Terms
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