Quoted future price

Could anyone please explain the meaning of quoted future price in futures, hardly to imagine how it operates with conversion factor

There are so many bonds that can all differ in so many different ways, it would just be a giant hassle for each bond issue to have its own market, and that also comes with a liquidity issue as well. To address this problem, the futures market for bonds are standardized.

So when you see a “quoted” futures price, this is the futures price of a “standardized benchmark bond”, as opposed to a specific issue of a specific bond. The purpose of the conversion factor is to translate between the futures price calculated for a specific bond issue, and what that futures price would look like when standardized on a hypothetical benchmark bond.

Still hardly to imagine, could you please give me an example. Thank you a lot :grin::grin: