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

What Exactly is a Requote?

A requote happens when you place a market order (e.g., buy USD/CNH at 6.8500) but the broker’s liquidity provider cannot fill that price. The broker then sends a message: 'Requote: New price is 6.8505, do you accept?' This is common with market maker brokers and during fast-moving markets. For China traders, requotes can be frustrating because they delay execution and may cause slippage.

Why Requotes Matter for China Traders

Many China retail forex traders use offshore brokers due to local restrictions on forex trading. These brokers often have variable liquidity. If you trade USD pairs like EUR/USD or USD/JPY, requotes can occur when news events hit. For example, during a Chinese GDP release, volatility spikes and requotes become more frequent. This can ruin a scalping strategy or cause missed opportunities.

How Requotes Work in Practice

Imagine you want to open a 0.1 lot USD/JPY trade at 110.00. Your broker shows a quote of 109.98/110.00. You click 'Buy' at 110.00, but the broker’s system checks liquidity and finds the price has moved to 110.02. You receive a requote: 'Buy at 110.02?' You can accept or reject. If you accept, you pay 2 pips more. Over many trades, this adds up.

For China traders, requotes are especially relevant because many rely on offshore brokers that may not have the best execution. Local payment methods like Bank Transfer, Skrill, and USDT are commonly used to fund accounts, but these brokers often operate as market makers, increasing requote risk. The local financial authority (e.g., the China Securities Regulatory Commission) does not directly regulate forex brokers, so China traders must be cautious. To minimize requotes, choose brokers with ECN/STP execution and check their requote policy. Also, avoid trading during major Chinese economic releases when volatility is highest. Using limit orders instead of market orders can help you control entry prices and avoid requotes entirely.

1. Check Broker Execution Type
   Before funding with USDT or Skrill, verify if your broker uses market execution (no requotes) or instant execution (requotes possible). ECN/STP brokers are best.
2. Use Limit Orders
   Instead of market orders, set buy limit or sell limit orders at your desired price. This avoids requotes because the order only executes if the market reaches your price.
3. Trade During High Liquidity
   Trade USD pairs during London-New York overlap (20:00-00:00 Beijing time) when liquidity is highest, reducing requote chances.
4. Test with Small Deposits
   Deposit a small amount via Bank Transfer or USDT and test the broker’s requote frequency during volatile periods before committing larger capital.

Requote vs Instant Execution: Instant execution brokers (common with market makers) often requote when prices move. Market execution brokers (ECN/STP) fill at the next available price without requote, but may have slippage. For China traders, market execution is generally better for avoiding requotes, but you may experience slippage during news events. Compare both models before depositing via Bank Transfer or USDT.

When you place a market order to buy USD/CNH at 6.8500, your broker sends this request to its liquidity provider. If the provider cannot fill at 6.8500 due to rapid price movement, the broker sends a requote: 'New price: 6.8505. Accept?' For China traders using USDT, this can happen frequently if the broker has limited liquidity. The process is: you click buy, broker checks liquidity, if price moved, requote appears. You then decide to accept or reject. Rejecting may cause you to miss the trade entirely.

Example 1: Zhang wants to buy EUR/USD at 1.1000 with a 0.5 lot size. He deposits $500 via Skrill. The broker shows 1.0998/1.1000. He clicks buy, but the market moves to 1.1003. He gets a requote: 'Buy at 1.1003?' He accepts, paying 3 pips extra. Over 10 trades, that's 30 pips lost.
Example 2: Li uses a USDT deposit to trade USD/JPY. He sets a buy limit at 110.00 instead of a market order. The price reaches 110.00, his order fills without requote. He avoids the issue entirely.

The local financial authority (e.g., China Securities Regulatory Commission) does not regulate retail forex trading for Chinese citizens. Instead, most China traders use offshore brokers regulated by FCA, CySEC, or ASIC. These regulators require brokers to disclose their execution model, including requote policies. For China traders, it's crucial to choose a broker that is transparent about requotes. If a broker is unregulated or from a weak jurisdiction, requotes may be more frequent and unfair. Always check the broker's license and read the client agreement for requote clauses.

• Know Your Broker's Requote Policy: Before depositing via Skrill or USDT, read the broker's terms. Some brokers charge a fee for requote rejections.
• Use a VPS for Faster Execution: A Virtual Private Server reduces latency, which can help avoid requotes during fast markets.
• Avoid News Trading: Non-farm payrolls, Fed decisions, and Chinese economic data cause requotes. Trade after the volatility settles.
• Monitor Slippage vs Requotes: Slippage is different from requotes. Requotes ask you to confirm; slippage executes automatically at a worse price. Know which your broker uses.
• Check Spreads During Volatility: Widening spreads often precede requotes. If spreads blow out, consider not trading.

Requotes are a reality for many China forex traders, especially when using offshore brokers. By understanding what they are and how to avoid them, you can protect your profits and trade more efficiently. Start by choosing an ECN/STP broker with a no-requote policy. Use limit orders instead of market orders, and trade during high liquidity hours. Test your broker with a small USDT deposit before committing larger funds. For more guidance, explore comparebroker.io's broker comparison tools tailored for China traders.