What is a Requote in Forex? A Complete Guide for Botswana Traders

What Exactly is a Requote?

A requote occurs when you place a market order at a specific price, but by the time the broker receives your order, the market price has moved. Instead of executing at your requested price, the broker sends you a new quote. You must accept or reject it. If you accept, your order is filled at the new price — usually less favorable. If you reject, you miss the trade.

How Requotes Affect Botswana Traders

For Botswana retail forex traders, requotes are most common during high-impact news events (like US Non-Farm Payrolls) or when trading exotic pairs with low liquidity. If you deposit via Skrill or USDT, the conversion to USD may already involve a small spread; a requote adds another layer of cost. For example, if you try to buy EUR/USD at 1.1000 but the broker requotes you at 1.1003, you pay 3 pips more per trade.

Why Do Brokers Issue Requotes?

Brokers issue requotes to protect themselves from slippage risk. Market makers and some dealing desk brokers use requotes to ensure they can fill your order at a price they can hedge. ECN brokers rarely requote because they match orders directly with liquidity providers. As a Botswana trader, choosing an ECN broker can significantly reduce requote frequency.

Requotes vs Slippage vs Rejection

Requotes are different from slippage (where your order fills at the next available price automatically) and rejection (where your order is not filled at all). Requotes give you a choice, but that choice often comes at a cost. In fast-moving markets, you may miss profitable opportunities while deciding.

How Requotes Apply to Botswana Traders

Botswana traders face unique challenges with requotes due to limited local broker options and reliance on international brokers. When you deposit via Bank Transfer from a Botswana bank, funds take 1-3 business days to clear, which means you cannot quickly add margin if a requote causes a margin call. Skrill and USDT deposits are faster but may involve conversion fees that compound requote costs. The local financial authority does not specifically regulate requote practices, so you must vet brokers yourself. Always check a broker's execution policy before depositing. Additionally, Botswana's internet infrastructure can cause latency, increasing the chance of requotes during volatile periods. Using a VPS or stable fiber connection can help reduce this risk.

1. Choose a No-Requote Broker
   Select an ECN or STP broker that guarantees no requotes. Check their order execution policy on their website or ask support. Avoid market makers that rely on requotes.
2. Use Limit Orders Instead of Market Orders
   Limit orders specify your desired price and will not execute unless that price is available. This eliminates requotes entirely. Use them for entries and exits.
3. Trade During Liquid Sessions
   Trade major forex pairs during London or New York session overlaps (2 PM to 6 PM Botswana time). Higher liquidity means fewer requotes.
4. Monitor News Calendars
   Avoid trading 30 minutes before and after major news releases. Use an economic calendar to plan your trades and reduce requote risk.

Requotes vs Slippage for Botswana Traders
Requotes ask for your approval on a new price; slippage executes automatically at the next available price. For Botswana traders, slippage is often preferable because it is faster and does not delay execution. However, slippage can be negative (worse price) or positive (better price), while requotes are almost always negative. In illiquid markets, slippage can be large, but requotes can cause you to miss the trade entirely. Choose brokers that offer market execution with minimal slippage for the best experience.

How Requotes Work in Practice
When you place a market order to buy USD/BWP (Botswana Pula) at a specific price, your broker sends the order to its liquidity provider. If the price has moved by the time it arrives, the broker returns a new quote. For example, you request to buy at 12.5000, but the broker responds with a new quote of 12.5005. You can accept (pay 5 pips more) or reject (miss the trade). This process happens in milliseconds but can feel slow during volatile markets. Botswana traders should note that requotes are more common with brokers using dealing desk models.

Real Examples for Botswana Traders
Example 1: You deposit $500 via Skrill and trade EUR/USD. You place a market order to buy at 1.1000. The broker requotes you at 1.1002. You accept and buy at 1.1002, losing 2 pips before the trade even starts. Over 100 trades, that adds up to 200 pips in extra costs. Example 2: You trade USD/JPY during the London session. Your order to sell at 110.00 is requoted to 110.03. You reject the requote and the price drops to 109.95. You missed a profitable trade. These examples show how requotes can cost you money or opportunities.

Regulatory Context for Botswana Traders
The local financial authority in Botswana oversees forex brokers operating within the country. While it does not specifically ban requotes, it requires brokers to act in clients' best interests and provide transparent execution policies. Botswana traders should only use brokers regulated by the local financial authority or reputable international bodies like the FCA (UK), CySEC (Cyprus), or ASIC (Australia). Unregulated brokers may use requotes to manipulate prices. Always check a broker's license number and verify it with the regulator's database before depositing funds via Bank Transfer, Skrill, or USDT.

• Use a Demo Account First: Test a broker's execution speed and requote frequency on a demo account before depositing real funds via Bank Transfer or Skrill.
• Set Slippage Tolerance: Some platforms allow you to set slippage tolerance. A higher tolerance may reduce requotes but increase slippage.
• Trade Small Lot Sizes: Smaller orders are easier to fill without requotes. Start with micro or mini lots to test the broker's execution.
• Check Ping Times: Use tools to measure latency between your Botswana location and the broker's server. Lower ping means faster execution and fewer requotes.
• Keep a Trading Journal: Record requote occurrences to identify patterns. If a broker requotes you frequently, consider switching.

Final Thoughts for Botswana Traders
Requotes are a common but avoidable part of forex trading. By choosing a no-requote broker, using limit orders, and trading during liquid hours, you can minimize their impact. Always test a broker's execution on a demo account first, and ensure your deposit method (Bank Transfer, Skrill, or USDT) is compatible. For more detailed broker comparisons and educational content, visit comparebroker.io. Start your trading journey informed and confident.