A quote (quotation) in which a dealer offers an approximate/ indicative price for trading of securities. In other words, the dealer would express, though a nominal bid (an indication), his/ her willingness to buy or sell a given security. A nominal quotation presents rough information about potential dealings, including a dealer’s expectation of a security’s price around a specific period of time. It does not constitute an actual bid or offer.

A dealer implies by a nominal quotation that the underlying bid or offer would be subject to final confirmation. In this sense, a nominal quotation is a subject quotation– i.e., the bid or offer may be altered at the dealer’s discretion. For example, in an out-firm quote, a dealer posts a request for quote (“offer wanted” request) and a market participants submits a “firm with recall” offer at a specific rate/ price. If in the meantime, a another market participant offers to buy the security at the same rate/ price.  The second offer cannot become firm as a commitment with the first offer is still effective. The dealer, putting the other request on hold, can only respond with a “subject offer” (a provisional offer, pending confirmation or withdrawal of the first offer).