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

What is a Requote in Forex?

A requote is a message from your broker indicating that the price you requested is no longer available. The broker then offers a new price, which may be higher or lower than your original request. This is common in fast-moving markets or when liquidity is low. For France traders, requotes can affect your profit margins, especially when trading USD pairs with high leverage.

How Does a Requote Work?

When you place a market order, your broker tries to fill it at the current price. If the market moves quickly, the price changes before your order is executed. The broker then sends a requote, showing the new price. You can accept or reject it. If you reject, your order is not executed. This is different from slippage, where the order is filled at a worse price without your consent.

Why Requotes Matter for France Traders

France retail forex traders often use brokers with market maker or dealing desk execution models, which are more prone to requotes. This can be frustrating when you are trying to enter or exit a trade quickly. For example, if you are trading EUR/USD and a major economic report is released, the price may move several pips in seconds. A requote could mean missing the trade or entering at a worse price.

Example of a Requote in USD Trading

Imagine you want to buy 1 lot of USD/CHF at 0.9200. You click 'buy' but the market moves to 0.9205. Your broker sends a requote: 'Price now 0.9205, accept or reject?' If you accept, you pay 5 pips more. For a standard lot, that's $50 extra cost. Over time, requotes can eat into your profits significantly.

How to Minimize Requotes

Use brokers with ECN/STP execution, which typically have fewer requotes. Trade during high liquidity hours, such as the London-New York overlap. Avoid trading during major news events unless you are using limit orders. Also, check your broker's requote policy before opening an account. Some brokers allow you to set a requote tolerance level.

For France traders, the local financial authority regulates forex brokers to ensure fair execution practices. However, requotes are a natural part of trading in volatile markets. Many French retail traders use brokers that accept Bank Transfer, Skrill, and USDT for deposits and withdrawals. These payment methods are widely accepted by brokers regulated by the local financial authority. When trading USD pairs, French traders should be aware that requotes can occur more frequently during the Asian session when liquidity is lower. To mitigate this, consider trading during European or American sessions. Additionally, some brokers offer 'no requote' guarantees, but these often come with wider spreads. Always read the terms and conditions carefully. The local financial authority provides a list of regulated brokers, which can help you choose a reliable broker with transparent execution policies.

1. Step 1: Choose a broker with ECN/STP execution
   Select a broker regulated by the local financial authority that offers direct market access. ECN/STP brokers typically have fewer requotes because they aggregate prices from multiple liquidity providers. This is crucial for France traders who want fast execution on USD pairs.
2. Step 2: Trade during high liquidity hours
   Trade USD pairs during the London-New York overlap (13:00-17:00 GMT) when liquidity is highest. This reduces the chance of requotes. Avoid trading during major news releases unless you use limit orders.
3. Step 3: Use limit orders instead of market orders
   Limit orders specify the exact price you want. They are less likely to trigger requotes because they only execute at your specified price or better. Market orders are more prone to requotes in fast markets.
4. Step 4: Monitor your broker's requote policy
   Check your broker's terms for requote handling. Some brokers allow you to set a requote tolerance or automatically accept requotes within a certain pip range. This can save time during volatile trading.

Requote vs. Instant Execution: Some brokers offer instant execution, which means your order is filled at the price you see, but requotes may still occur if the price changes. Market execution fills at the next available price, which can lead to slippage. For France traders, instant execution may seem better, but it often comes with wider spreads. Market execution is faster but riskier. Your choice depends on your trading style and risk tolerance.

When you place a market order in forex, your broker sends a request to a liquidity provider. If the price moves before the order is filled, the liquidity provider sends a new price. The broker then displays this requote on your platform. For France traders using USD pairs, this process can take milliseconds. During high volatility, the delay can be longer. Some brokers automatically accept requotes within a certain range, while others require manual confirmation. Understanding this process helps you react quickly when a requote appears.

Example 1: You are trading USD/JPY. You see the price at 110.50 and click 'buy 1 lot'. The market moves to 110.52 instantly. Your broker sends a requote: 'Price now 110.52, accept or reject?' If you accept, you pay 2 pips more. For 1 lot, that's $20 extra.

Example 2: You are trading EUR/USD during the NFP release. The price jumps 10 pips. Your market order gets a requote at a worse price. You reject the requote and miss the trade. Later, the price moves in your favor. This shows how requotes can protect you from bad fills but also cost you opportunities.

The local financial authority in France regulates forex brokers to ensure they follow best execution practices. Under MiFID II, brokers must disclose their order execution policies, including how they handle requotes. The authority can investigate complaints about unfair requote practices. For France traders, this means you have recourse if a broker uses requotes to disadvantage you. Always verify that your broker is registered with the local financial authority. You can check the official register online. Regulated brokers are required to segregate client funds and provide transparent trade reports. This regulatory framework helps protect French retail traders from abusive requote practices.

• Tip 1: Use a demo account first: Test your broker's execution speed and requote frequency on a demo account before depositing real funds. This is especially important for France traders using Bank Transfer or Skrill.
• Tip 2: Avoid trading during news spikes: Major economic data releases from the US or Eurozone can cause extreme volatility. Requotes are more common during these times. Use a news calendar to plan your trades.
• Tip 3: Set requote tolerance in your platform: Some platforms like MetaTrader allow you to set a requote tolerance (e.g., 3 pips). If the requote is within that range, it is automatically accepted. This can speed up execution.
• Tip 4: Monitor your broker's liquidity providers: Brokers with multiple liquidity providers tend to have fewer requotes. Ask your broker about their liquidity sources.
• Tip 5: Keep an eye on spreads: Wide spreads often indicate low liquidity, which increases requote risk. Trade during peak hours when spreads are tight.

Requotes are a common part of forex trading, especially for France traders using market maker brokers. By understanding what requotes are and how to minimize them, you can improve your trading performance. Choose a broker regulated by the local financial authority with ECN/STP execution. Use limit orders, trade during high liquidity hours, and monitor your broker's requote policy. If you experience frequent requotes, consider switching to a broker that supports Bank Transfer, Skrill, or USDT with better execution. For more educational content and broker comparisons, visit comparebroker.io and make informed trading decisions.