Requote

A requote occurs when a forex broker is unable to execute a trade at the price the trader requested and instead offers a new (typically less favorable) price for the trader to accept or reject. Requotes happen when the market moves between the moment a trader clicks to execute and the moment the order reaches the broker's server for processing — a phenomenon driven by price latency and rapid market movement.

The requote process works as follows:

1. The trader sees a price on their platform and clicks buy or sell
2. The order travels to the broker's server (this takes milliseconds but is not instantaneous)
3. By the time the order arrives, the market price has moved beyond the acceptable range
4. Instead of filling the order at a now-stale price, the broker sends back a notification showing the new available price
5. The trader can accept the new price and execute, or reject it and wait for a more favorable opportunity

Requotes are most common in certain conditions:

• High volatility periods: During major economic releases (Non-Farm Payrolls, central bank decisions, CPI data), prices can move several pips per second, making the originally quoted price obsolete
• Market maker brokers: Because market makers are the counterparty to trades, they have an interest in not filling orders at prices that would give the trader an unfair advantage from price latency
• Illiquid markets: During off-hours or in exotic pairs where fewer market participants provide liquidity
• Large order sizes: Very large orders may exhaust available liquidity at the quoted price, triggering a requote to a level where sufficient liquidity exists

The distinction between requotes and slippage is important. A requote asks the trader to accept or reject a new price before execution — the trader retains control. Slippage, on the other hand, occurs when an order is filled at a different price than requested without prior notification, which is standard in ECN/STP execution models and during market orders.

Broker execution models significantly impact requote frequency:

• Market maker (dealing desk) brokers: More prone to requotes because the broker manually or algorithmically approves each trade
• ECN/STP (no dealing desk) brokers: Rarely requote because orders are sent directly to liquidity providers and filled at the best available price, though slippage may occur instead
• Hybrid models: Some brokers use a combination, with small orders processed automatically and large orders subject to manual review and potential requotes

Excessive requotes are a red flag indicating potential broker quality issues. While occasional requotes during extreme volatility are normal, frequent requotes during regular market conditions may suggest the broker is using requotes strategically to avoid filling profitable trades — a practice known as asymmetric slippage or last-look execution. Traders should monitor their requote rate and consider switching brokers if it becomes excessive.

To minimize requotes, traders can:

• Use limit orders instead of market orders when possible
• Set acceptable slippage parameters in their platform settings
• Avoid trading during the first seconds of major news releases
• Choose ECN/STP brokers that provide direct market access
• Ensure a fast, stable internet connection to reduce order transmission latency