What is a Two-Way Price?
Two-way prices are dual price quotations that include both an offer price and a bid price. This type of quote is commonly used in foreign exchange markets where investors engage in the buying and selling of currency. Banks also make use of a two-way price when calculating the current rate of exchange in order to conduct wire transfers of funds between various countries. A two-way price is also often employed with bond prices as well. When it comes to Forex trading, a two-way price allows the investor to see what he or she will receive in the way of a return by purchasing or selling a particular set of currencies. The details of the proposed transaction will depend on the specific dealer who would handle the transaction, and the current rate of exchange that exists between the two currencies. Because the two-way price includes both an offer and a bid price, it is easy for the investor to determine if the proposed exchange is advantageous or should be avoided at the present time. It is i
