Why Requotes Happen in Forex and How to Avoid Them
After clicking “Buy” to start trading, the system displays a message informing you that the price has changed. That’s a requote – a common trading frustration that can make you miss opportunities, especially in fast markets. In this article, we’ll explain what requotes are, why they happen, and how to avoid them for smoother trading.
What Is a Requote in Forex Trading?
A requote in forex trading happens when the broker is unable to complete an order at the requested price due to market price changes. Instead of processing the order immediately, the broker sends you a new price to accept or reject. This usually happens in highly volatile markets or when a small delay occurs between submitting and processing an order. This creates problems for traders because the market price moves away before they can complete their trade.
Why Do Requotes Happen in Forex?
Requotes occur mainly because of price slippage and fast-moving markets. Forex prices can change in milliseconds due to news events, high trading volume, or sudden liquidity shifts. If your broker uses a dealing desk system, they may send requotes when their displayed price doesn’t match the current market price. Bad internet connections or slow data transfer to your broker can create requotes, which means good technology is as important as having a good trading plan.
How Requotes Affect Your Trading
Requotes may seem like small problems, but they can build up into larger difficulties. Here are some effects from requotes:
1. Missed Opportunities
When traders refuse the updated price, they could lose the chance to trade completely. This feels especially bad when the price changes to help them make a profit right after they reject the requote.
2. Worse Entry/Exit Points
Accepting the new price usually means getting a less profitable rate. After many trades, these poor prices can greatly decrease total earnings.
3. Emotional Frustration
Getting requotes repeatedly can make traders trade too much or become overly cautious. This emotional impact often causes more damage than the actual price differences.
4. Scalping Challenges
For traders who make small, fast profits, even minor requotes can destroy their trading plan. Since scalping targets tiny profits, any requote can eliminate the entire profit margin.
How to Avoid Requotes in Forex
While no trader can completely eliminate requotes, you can reduce them with smart habits:
| Tip | Why It Helps |
|---|---|
| Choose ECN or STP Brokers | Direct market execution reduces price manipulation. |
| Use Pending Orders | Pre-sets entry points for automatic execution during volatile periods. |
| Set Stop Loss & Take Profit | Ensures exits happen automatically at your chosen price, avoiding requotes during fast market moves. |
| Set Slippage Tolerance | Allows your platform to accept small price changes automatically. |
| Avoid High-Impact News Trading | Important news releases cause extreme price swings that frequently lead to requotes. |
| Use High-Speed Internet Connection | Minimizes the delay between clicking “trade” and order execution. |
| Choose Reliable Broker | Reliable brokers with good infrastructure deliver quicker execution and fewer requotes. |
Conclusion
Requotes in forex trading can be annoying problems that slow down your profits. By understanding why they happen and taking steps to reduce them, traders can trade with more confidence and fewer interruptions. Remember, the forex market moves fast — but with the right broker, tools, and timing, traders can react quickly and get closer to their target prices. The aim isn’t to stop all requotes, but to reduce their frequency so they don’t damage the overall trading strategy.
Disclaimer
Forex trading involves significant risk of loss and is not suitable for all investors. The information provided in this article is for educational purposes only and should not be considered financial advice. Please consult with a licensed financial advisor before making any trading decisions.
FAQs
A requote occurs when a broker offers a new price for a trade after the original price is no longer available. It usually happens during high volatility when prices move quickly, causing delays in order execution.
Yes, frequent requotes can indicate poor order processing or old technology. However, they may also occur during volatile news events. Choose brokers with ECN or high-speed trade execution to avoid them.
A requote gives you a new price before trade execution, requiring your confirmation. Slippage executes the order at the next best price without asking for approval.
Yes, requotes are legal and common with market maker brokers. However, frequent or suspicious requotes might signal that brokers are using unfair practices and should be reported to authorities or avoided.
Pro traders often avoid brokers that often give requotes, use ECN accounts, trade off-peak hours, and rely on VPS or high-speed internet to ensure fast and stable execution.