A posted price is said to be under negotiation when an interested dealer asks the broker for an improvement or for any flexibility in the price quotation. The improved price should only be shown to the negotiating dealer. If not immediately dealt, the broker may announce the improved price to other dealers as a live and dealable price, unless specified by the quoting dealer that such price is only for the negotiating dealer and should be taken off if the negotiating bank does not deal on it.

While a negotiation is on-going, the original posted price stands as a live price and can be hit or lifted by any other aggressor dealer unless this is withdrawn by the quoting dealer due to the undergoing negotiation.

If however, the price under negotiation has not been dealt by another aggressor dealer, the quoting dealer cannot just withdraw the price being negotiated until it gives the benefit of a repeat price to the negotiating dealer. The quoting dealer cannot give a repeat price to the negotiating dealer that is worse than the original posted price as it will be similar to withdrawing the price.

The negotiation of the price should only take a few seconds for the benefit of the quoting dealer, as the quoting dealer is bounded to maintain his/her price until a “repeat” of the price is given to the aggressor dealer while market is moving. If the negotiating dealer requested for a specific volume to the quoting dealer (or through the broker), then the negotiating dealer is committed to deal only up to such amount. The quoting dealer on the other hand, is not committed to deal on the requested volume but is committed to deal on the original volume that was posted prior to the negotiation. If he has the volume and he is willing to deal on the amount requested, he can opt to do so.