What Is a Requote in Forex? A Complete Guide for Cyprus Traders

What Exactly Is a Requote?

A requote is a message from your broker indicating that the price you wanted is no longer available. Instead of executing your order, the broker asks if you want to trade at a different price. This is typical in fast-moving markets or when liquidity is thin.

How Requotes Affect Cyprus Retail Traders

Cyprus retail traders often trade pairs like EUR/USD, GBP/USD, and USD/CHF. During the London session, which overlaps with Cyprus time (UTC+2), requotes become more frequent. For example, if you try to buy EUR/USD at 1.1050 but the market jumps to 1.1055, your broker may requote you at 1.1055. This means you pay 5 pips more per USD lot.

Why Requotes Happen

Requotes happen because of market volatility, low liquidity, or broker execution policies. Many Cyprus-based brokers operate as market makers or use dealing desks. These brokers may requote you during news events to manage their risk. ECN brokers generally reduce requotes but may have higher spreads.

Requotes and Your Trading Costs

Every requote can cost you pips. For a Cyprus trader trading 1 standard lot (100,000 units) of EUR/USD, a 5-pip requote equals $50. Over many trades, requotes can significantly reduce your profitability. Using limit orders and trading during liquid hours helps minimize this.

For Cyprus traders, requotes are particularly relevant because many retail brokers operate in Cyprus under the local financial authority. These brokers often offer high leverage and tight spreads but may have execution policies that lead to requotes during volatile periods. Cyprus traders commonly use Skrill, USDT, and bank transfers to fund accounts. While these methods are fast, they don't affect requote frequency. However, ensuring your account is funded quickly with Skrill or USDT helps you enter trades without delay, reducing the chance of missing a price. The local financial authority requires brokers to provide fair execution, but requotes are not prohibited. Cyprus traders should choose brokers with transparent execution policies and low requote rates.

1. Understand the Market Conditions
   Check the economic calendar for Cyprus-time news events. Avoid trading during high-impact news like ECB or Fed announcements if you want to reduce requotes.
2. Choose the Right Account Type
   Open an ECN or DMA account with a Cyprus-regulated broker. These accounts typically have fewer requotes than standard market maker accounts.
3. Use Limit Orders
   Instead of market orders, place limit orders at your desired price. This avoids requotes because the order only executes when the price reaches your level.
4. Test Your Broker's Execution
   Open a demo account and test execution speed during the London session. Note how often requotes occur and decide if the broker suits your Cyprus trading style.

Requote vs. Instant Execution: Instant execution brokers requote you when price changes. Market execution brokers fill you at the next available price (slippage). For Cyprus traders, market execution is faster but unpredictable. Instant execution gives you control but delays your trade. Choose based on your trading style.

A requote works when you send a market order to your broker. The broker checks the current market price and finds it different from your requested price. Instead of executing at the new price automatically, the broker sends a requote asking for your approval. For example, if you want to sell USD/CHF at 0.9200 but the market is now 0.9205, the broker requotes you at 0.9205. You can accept or reject. This process adds seconds to your trade, which in fast markets can cost pips.

Example 1: You trade EUR/USD with $1,000 USD in your Cyprus account. You place a market order to buy at 1.1050. The broker requotes at 1.1053. You accept. Your entry price is 3 pips higher. On a standard lot, that costs $30 USD extra.

Example 2: During the London session, you try to sell GBP/USD at 1.2500. The market drops fast. Your broker requotes at 1.2495. You accept and gain 5 pips. Requotes can sometimes work in your favor, but usually they increase costs.

The local financial authority in Cyprus (CySEC) regulates forex brokers under MiFID II rules. CySEC requires brokers to provide best execution, but requotes are not explicitly banned. This means Cyprus traders must be vigilant. Always check if your broker is licensed by CySEC and has a low requote rate. CySEC also mandates client fund segregation, which protects your USD deposits. However, execution quality varies between brokers. Use comparebroker.io to find CySEC-regulated brokers with transparent requote policies.

• Trade During Liquid Hours: Focus on the London session (9:00-17:00 Cyprus time) when liquidity is highest and requotes are less common.
• Use a VPS: A virtual private server hosted near your broker's servers in Cyprus or London can reduce execution delays and requotes.
• Monitor News Events: Avoid trading 5 minutes before and after major news releases to reduce requote risk.
• Compare Brokers: Test multiple Cyprus-regulated brokers on demo accounts to find the one with the lowest requote rate for your USD pairs.
• Set Slippage Tolerance: In MetaTrader, set a higher slippage tolerance to convert requotes into automatic execution at the next available price.

Requotes are a reality for Cyprus forex traders, especially during volatile market conditions. By understanding what causes requotes and how to avoid them, you can protect your USD profits and trade more efficiently. Choose a CySEC-regulated broker, use limit orders, and trade during liquid hours. For more educational content and broker comparisons, visit comparebroker.io regularly.