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

What Exactly is a Requote?

A requote happens when you place a market order or a pending order, but the broker's liquidity provider cannot execute at your specified price. The broker then sends you a new price quote, which may be worse than your original request. For example, if you want to buy USD/HKD at 7.8500, but the broker's system cannot fill at that level, you might receive a requote at 7.8505. You must accept or reject this new price.

How Does a Requote Work?

When you click 'buy' or 'sell', your order is sent to the broker's server. The broker checks with its liquidity providers (banks or other institutions) if they can match your price. If the market has moved, the liquidity provider may offer a different price. The broker then presents this new price to you as a requote. You have a few seconds to decide. If you reject, the order is cancelled. This process is more common with 'instant execution' brokers, while 'market execution' brokers usually fill at the next available price without asking.

Why Requotes Matter for Hong Kong Traders

Hong Kong is a global financial hub with high retail forex participation. Traders here often use local brokers that offer leveraged trading on USD pairs. Requotes can erode profits, especially for scalpers or day traders who rely on tight spreads and fast execution. During news events like US Non-Farm Payrolls or China GDP data, requotes become frequent. Also, Hong Kong traders using USDT deposits may face additional delays due to blockchain confirmation times, increasing requote risk.

Practical Example for Hong Kong Traders

Imagine you are trading USD/JPY with a Hong Kong broker. You place a market order to buy 1 lot at 110.50. Due to a sudden USD strengthening, the broker's liquidity provider cannot fill at 110.50 and offers 110.55. You accept the requote, paying 5 pips more. If you had a stop-loss at 110.45, the requote could cause a loss before the trade even starts. This is why many Hong Kong traders prefer brokers with 'no requote' policies or ECN execution.

For Hong Kong traders, requotes are particularly relevant due to the unique local trading landscape. Many retail traders use local brokers that offer leverage up to 1:100 or higher, and they often trade during Asian hours when liquidity is lower. This increases the chance of requotes. Payment methods like Bank Transfer, Skrill, and USDT are popular in Hong Kong, but each has different settlement times. USDT deposits, while fast, can experience price slippage if the broker's execution system lags. The local financial authority, the Securities and Futures Commission (SFC), regulates forex brokers but does not specifically ban requotes. However, brokers must disclose their execution policy. Hong Kong traders should always check if their broker is licensed by the SFC and read the terms regarding requotes. Using a broker with a 'no requote' guarantee can save significant costs over time.

1. Check Broker Execution Type
   Choose a broker that offers market execution or ECN/STP models to minimize requotes. Avoid dealing desk brokers that often requote.
2. Test with a Demo Account
   Open a demo account with your chosen Hong Kong broker and test execution speed during volatile times. Note how often requotes occur.
3. Avoid High-Impact News
   Refrain from trading during major economic releases like US interest rate decisions or China trade data. Requotes spike during these periods.
4. Use Limit Orders
   Instead of market orders, use limit orders to specify the exact price you want. This reduces the chance of requotes.
5. Monitor Your Broker's Liquidity
   Ask your broker about their liquidity providers. More providers usually mean fewer requotes. Some Hong Kong brokers offer multiple liquidity sources.

For Hong Kong traders, requotes are similar to 're-quoting' in CFD trading, but in forex, they are more common due to the 24-hour market. Compared to slippage, requotes give you a choice, but they can be more frustrating because you may miss a trade. Some brokers offer 'no requote' guarantees, but this often means they use market execution with slippage. Which is better? If you want control, choose a broker with requotes but fast decision time. If you want speed, choose market execution. Always test both with a demo account before funding with Bank Transfer, Skrill, or USDT.

When you place a trade with a Hong Kong broker, your order goes to the broker's server. The broker then contacts its liquidity providers (banks or financial institutions) to find a matching order. If the liquidity provider cannot fill at your requested price, the broker sends you a requote with a new price. For example, you want to sell USD/HKD at 7.8500. The liquidity provider quotes 7.8503. The broker shows you this new price. You can accept it and the trade opens at 7.8503, or reject it and the order is cancelled. This process takes a few seconds, but during fast markets, it can cause delays and missed opportunities. Hong Kong traders using USDT deposits may experience slightly longer requote times due to blockchain verification.

Example 1: Hong Kong Trader Using Bank Transfer
Ahmed deposits HKD 100,000 via Bank Transfer into his SFC-licensed broker account. He tries to buy 1 lot of USD/JPY at 110.50. The market moves quickly, and the broker requotes at 110.55. Ahmed accepts, paying 5 pips extra. His trade is now at a slight disadvantage from the start.

Example 2: Hong Kong Trader Using USDT
Mei deposits 10,000 USDT into her broker account. She places a sell order on GBP/USD at 1.3000. Due to low liquidity during Asian hours, the broker requotes at 1.2998. Mei rejects the requote. The order is cancelled, and she loses the opportunity. This shows how requotes can affect timing and profits.

In Hong Kong, forex brokers are regulated by the Securities and Futures Commission (SFC). The SFC requires brokers to have a valid license and to act in the best interest of clients. However, requotes are not specifically prohibited. Brokers must disclose their order execution policy, including whether they use requotes. For Hong Kong traders, this means you have the right to know how your orders are handled. Always check the SFC's public register to ensure your broker is licensed. If you encounter excessive requotes, you can file a complaint with the SFC. Regulation helps ensure fair treatment, but it's still your responsibility to choose a broker with transparent execution practices.

• Tip: Use VPS for Faster Execution: Hong Kong traders can reduce requotes by using a Virtual Private Server (VPS) near the broker's servers. This cuts latency and improves order speed.
• Tip: Trade Major Pairs Only: Stick to major pairs like EUR/USD, USD/JPY, or USD/HKD. Exotic pairs have lower liquidity and more requotes.
• Tip: Avoid Peak News Hours: The 8:30 AM to 10:00 AM Hong Kong time period often overlaps with US news. Avoid trading then to reduce requotes.
• Tip: Check Spreads During Requotes: Some brokers widen spreads when requoting. Compare the requoted price to the current market spread to see if you are being treated fairly.
• Tip: Use a Broker with 'No Requote' Guarantee: Some Hong Kong brokers advertise 'no requote' execution. Test this with a small live account first.

Requotes are a reality for many Hong Kong forex traders, especially those using retail brokers with instant execution. By understanding what causes requotes and how to minimize them, you can protect your profits and trade more effectively. Remember to choose an SFC-licensed broker, test execution with a demo account, and avoid trading during high volatility. For more comparisons of Hong Kong brokers, visit comparebroker.io to find the best option for your trading style. Start your journey today with a broker that offers fair execution and minimal requotes.