Introduction

A requote is a common term in Forex trading that occurs when a broker offers a different price than the one requested by a trader. This usually happens when the market moves too quickly and the original price is no longer available at the time of execution.

Accordingly, requotes can be frustrating for traders, especially in fast-moving markets. Additionally, they are more common in volatile conditions or with brokers that use slower execution systems. Although requotes can delay trade execution, they are sometimes used to protect traders from extreme price changes.

This article explains what a requote is, why it happens, and how traders can avoid or reduce it.

What Is a Requote?

A requote occurs when a trader tries to execute an order at a specific price, but the broker responds with a new price because the original one is no longer available.

In simple terms:

• You request a trade at a certain price
• The broker cannot fill it at that price
• A new price is offered instead

Accordingly, the trader must accept or reject the new price.

 

How Requotes Work

Step-by-Step Process:

Trader places a market order

Price changes before execution

Broker cannot match original price

Broker sends a new price (requote)

Trader decides to accept or reject

Additionally, this process happens within seconds during fast markets.

 

Why Requotes Happen

1. High Market Volatility

Prices change rapidly during news events.

 

2. Slow Execution Speed

Broker delays cause price mismatches.

 

3. Low Liquidity

Not enough buyers or sellers at requested price.

 

4. Market Gaps

Sudden jumps in price between quotes.

Additionally, requotes are more common during major economic releases.

 

Requote vs Slippage

Feature	Requote	Slippage
Definition	New price offered	Execution at different price
Execution	Delayed	Instant
Trader Control	Accept or reject	No control
Market Type	Slow execution brokers	Fast markets

Accordingly, requotes delay execution, while slippage changes execution price automatically.

 

Effects of Requotes on Trading

1. Missed Opportunities

Price may move away during delay.

 

2. Execution Frustration

Traders lose confidence in timing.

 

3. Reduced Trading Speed

Slows down decision-making.

 

4. Strategy Disruption

Scalping strategies are heavily affected.

Additionally, requotes can reduce trading efficiency.

 

When Requotes Are Most Common

1. News Events

High-impact economic data releases.

 

2. Volatile Markets

Sudden price spikes or crashes.

 

3. Low Liquidity Sessions

Off-market hours or less active pairs.

 

4. Market Open Periods

Prices adjust rapidly after opening.

Additionally, ECN brokers experience fewer requotes.

 

How to Avoid Requotes

1. Use ECN Brokers

ECN brokers provide direct market execution.

 

2. Trade During Stable Conditions

Avoid high volatility periods.

 

3. Use Limit Orders

Lock in specific entry prices.

 

4. Choose Fast Execution Platforms

Reduce delays in order processing.

Additionally, technology plays a major role in reducing requotes.

 

Requotes in Different Markets

Forex Market

• Common with market makers
• Occurs during volatility

 

Stock Market

• Happens during earnings announcements
• Price changes quickly at open/close

 

Cryptocurrency Market

• Less common but possible
• High volatility causes rapid price changes

Additionally, crypto markets often use slippage instead.

Advantages of Understanding Requotes

1. Better Broker Selection

Choose faster execution brokers.

2. Improved Trade Timing

Avoid high-risk market conditions.

3. Realistic Expectations

Understand execution limitations.

4. Better Strategy Design

Adjust trading methods accordingly.

Accordingly, awareness improves trading performance.

 

Common Mistakes Traders Make

1. Using Slow Brokers for Scalping

Increases requote frequency.

 

2. Trading During News Events

High volatility increases execution issues.

 

3. Ignoring Execution Type

Not checking broker model.

 

4. Overusing Market Orders

Higher chance of requotes.

Additionally, proper planning reduces issues.

 

Who Is Most Affected by Requotes?

• Beginner traders
• Scalpers
• News traders
• Market maker broker users
• High-frequency traders

Accordingly, execution speed is critical for these groups.

 

Frequently Asked Questions

What is a requote in Forex?

It is when a broker offers a new price instead of the requested one.

Why do requotes happen?

Due to fast price movements or slow execution.

Are requotes bad?

They can delay trades but are sometimes protective.

How can I avoid requotes?

By using ECN brokers and trading during stable conditions.

 

Final Thoughts

A requote occurs when a broker cannot execute a trade at the requested price and instead offers a new one. Accordingly, it is most common in volatile markets or with slower execution systems.

Additionally, while requotes can be frustrating, they are part of market mechanics designed to handle price changes. Traders can reduce their impact by using ECN brokers, trading during stable conditions, and avoiding high-volatility periods.

Ultimately, understanding requotes helps traders choose better brokers and improve execution quality in financial markets.

 

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