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

What Exactly is a Requote?

A requote occurs when you place a market order at a specific price, but the broker cannot fill it at that price due to market movement. Instead, the broker sends you a new quote — a requote — asking if you want to trade at the new price. If you accept, the trade executes at the requoted price. If you decline, the order is cancelled.

How Requotes Work in Practice

Imagine you are trading EUR/USD with a USD account from Ethiopia. You see a price of 1.1000 and click to buy. But by the time your order reaches the broker, the price has moved to 1.1002. The broker sends a requote: 'New price: 1.1002. Accept or reject?' You must decide quickly. This delay can be costly in fast markets.

Why Requotes Matter for Ethiopia Traders

For Ethiopia traders, requotes are especially relevant because many brokers serving Ethiopia clients use offshore licenses and may have less advanced technology. Funding via Bank Transfer, Skrill, or USDT can also add processing delays, increasing requote risks. Additionally, the local financial authority does not regulate forex brokers, so execution quality varies widely between brokers.

Requotes vs. Slippage

Requotes are different from slippage. Slippage happens automatically — your order fills at the next available price. Requotes require your manual approval, which can cause you to miss a trade entirely. Both can impact your trading, but requotes are more disruptive because they interrupt your trading flow.

For Ethiopia traders, requotes are a common issue due to the nature of retail forex trading in the country. Most Ethiopia traders use international brokers that are not regulated by the local financial authority. This means execution quality depends entirely on the broker's technology and liquidity providers. When funding your account via Bank Transfer, Skrill, or USDT, you may experience slower deposit times, which can affect your ability to trade quickly. However, the main impact of requotes is on your trading performance. If you are scalping or trading news events, a requote can turn a winning trade into a losing one. For example, if you try to buy USD/ETB (if available) or other USD pairs during high volatility, a requote could add extra pips to your entry cost. To minimize requotes, choose brokers that offer ECN or STP execution with no dealing desk intervention. Also, use limit orders instead of market orders to control your entry price. Always test a broker's execution speed with a small deposit via Skrill or USDT before committing larger funds.

1. Check Broker Execution Type
   Before trading, confirm if your broker uses ECN, STP, or market maker execution. ECN and STP brokers generally have fewer requotes. Look for this information in the broker's terms or ask support.
2. Use Limit Orders Instead of Market Orders
   Limit orders allow you to specify the exact price you want to trade. If the market does not reach that price, the order won't execute — avoiding requotes entirely. This is especially useful for Ethiopia traders using USD accounts.
3. Trade During High Liquidity Hours
   Forex liquidity is highest when London and New York sessions overlap (12:00-16:00 GMT). Trading during these hours reduces the chance of requotes because there are more buyers and sellers. Ethiopia time is GMT+3, so this overlaps with afternoon trading.
4. Test with a Demo Account
   Open a demo account with your chosen broker and test execution speed during different market conditions. Use the same funding method (e.g., Skrill or USDT) to simulate real trading. This helps you understand requote frequency before depositing real USD.

Requotes vs. Instant Execution
Instant execution is a broker setting that tries to fill your order at the requested price. If it cannot, it requotes. Market execution fills your order at the next available price without requoting. For Ethiopia traders, market execution is usually better because it avoids delays. However, it can cause slippage. Choose based on your trading style: scalpers prefer market execution, while swing traders may accept instant execution with requotes.

When you place a market order in forex, your broker tries to fill it at the current price. If the price changes before the order is executed, the broker sends a requote — a new price — and asks for your approval. For Ethiopia traders using USD accounts, this can happen when trading major pairs like EUR/USD or GBP/USD. For example, if you try to buy 1,000 units of EUR/USD at 1.1000, but the market moves to 1.1002, the broker will requote you at 1.1002. You can accept or reject. Requotes are more common with market maker brokers and during low liquidity periods.

Example 1: You are trading USD/JPY from Ethiopia with a $500 account. You see a buy price of 110.00 and click to buy 0.1 lots. The broker requotes at 110.02. If you accept, your entry is 2 pips higher, reducing potential profit. If you reject, you miss the trade.

Example 2: During a major news release, EUR/USD moves 20 pips in seconds. You try to sell at 1.1200, but the broker requotes at 1.1195. You accept, but the price continues to 1.1180, giving you a better exit. However, requotes can also work against you if the price reverses.

Regulatory Context for Ethiopia Traders
The local financial authority in Ethiopia does not regulate forex brokers directly. This means Ethiopia traders must rely on offshore regulators like the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), or the Vanuatu Financial Services Commission (VFSC) for protection. When choosing a broker, always verify its regulatory license. Regulated brokers are required to follow strict execution rules, which can reduce requote frequency. However, even regulated brokers may requote during extreme market conditions. For Ethiopia traders, the best approach is to choose a broker with a strong reputation and clear execution policy. Avoid unregulated brokers that promise unrealistic conditions. Using Bank Transfer, Skrill, or USDT for deposits does not affect regulation, but it does affect how quickly you can fund your account and start trading.

• Choose ECN/STP Brokers: These brokers connect you directly to the market, reducing requote chances. Avoid market makers that may requote more often.
• Use Limit Orders: Limit orders let you set a specific price. If the market doesn't reach it, no trade — no requote. This is ideal for Ethiopia traders who want precise entries.
• Avoid News Trading: Major news events cause high volatility and frequent requotes. If you must trade news, use pending orders instead of market orders.
• Test with Small Deposits: Deposit $10–$20 via Skrill or USDT to test execution. If you experience requotes, switch brokers.
• Monitor Internet Connection: Slow internet can delay order transmission, increasing requote likelihood. Use a stable connection, preferably wired.

Requotes are a common but manageable issue in forex trading. For Ethiopia traders, understanding what requotes are and how to avoid them is essential for successful trading. By choosing ECN/STP brokers, using limit orders, and trading during high liquidity hours, you can significantly reduce requote frequency. Always test your broker with a small deposit via Skrill or USDT before committing larger funds. Remember, the local financial authority does not regulate forex brokers, so you must do your own due diligence. If you experience frequent requotes, switch to a more reliable broker. Start your trading journey with a demo account today to practice avoiding requotes in real market conditions.