An executable price quote in the context of foreign exchange (FX) is a firm, binding rate provided by a liquidity provider (such as a bank or dealer) at which a client can immediately execute a trade for a specified amount and currency pair. When a customer requests a quote and receives an executable rate, they have the option to accept and trade at that rate within a defined time window, typically a few seconds or minutes, depending on market conditions and the provider’s policies.

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Key Characteristic

• Firm and Binding: Unlike indicative quotes, which are only estimates and not guaranteed, an executable price quote is a commitment by the provider to transact at the quoted rate if the client accepts within the validity period.
• Immediate Execution: The client can execute (trade) at the quoted price without further negotiation, provided the acceptance occurs before the quote expires.
• Specified Terms: The quote includes all relevant details such as currency pair, amount, rate, and expiration time.
• Risk Management: The provider may factor in market conditions and risk management considerations when determining the executable rate.

Example

A client requests a USD/EUR exchange rate for $1,000,000. The bank responds with an executable quote of 1.0662, valid for 90 seconds. If the client accepts within that window, the trade is executed at that rate.

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