Primary dealers quote two-way prices and are willing to deal either side, i.e. they buy and sell the base currency up to conventional amounts at those prices. However, in interbank markets this is a matter of mutual accommodation. A dealer will be shown a two-way quote only if he / she extends the privilege to fellow dealers when they call for a quote.
Communications between dealers tend to be very terse. A typical spot transaction would be dealt as follows:
BANK A : “ Bank A calling. Your price on mark — dollar please.”
BANK B : “ Forty forty eight.”… Read the rest