What is a Requote in Forex? A Complete Guide for India Traders (2026)

How a Requote Works in Forex

When you place a market order, your broker tries to execute it at the current price. If the price moves before execution, the broker sends a requote — a new price you must accept or reject. This is common in fast-moving markets or with brokers using ‘request quote’ execution. For India traders, requotes can occur during RBI policy announcements or when major global data like US jobs reports is released.

Why Requotes Matter for India Traders

India traders face unique challenges: SEBI only allows trading in INR pairs like USD/INR, EUR/INR, GBP/INR, JPY/INR, and a few others. These pairs have lower liquidity compared to major forex pairs, making requotes more likely. Additionally, many India traders use UPI or IMPS to deposit funds, which means they often trade with smaller accounts and may be more sensitive to price differences. A requote of even 1 pip on a ₹1,00,000 trade can cost ₹100 or more.

Real Example of a Requote for India Traders

Suppose you want to buy USD/INR at 83.50. You click ‘Buy’ and your broker sends a requote: ‘83.52’. You have two options: accept the new price (paying ₹2 more per dollar) or reject it. If you accept, your entry price is worse by 2 pips. On a standard lot (1,000 units), that’s an extra ₹2,000 cost. This is why India traders should use limit orders or trade with brokers offering ‘instant execution’.

For India traders, requotes are influenced by local payment methods and regulations. Most brokers catering to India accept UPI, IMPS, USDT, and Skrill for deposits. However, not all brokers process orders at the same speed. If your broker uses slow servers or has high latency, requotes become more frequent. SEBI mandates that brokers provide transparent execution policies, but many offshore brokers operating in India do not follow these rules. Always choose a SEBI-registered broker or a reputable international broker with clear execution terms. When depositing via UPI, check if the broker has a ‘no requote’ guarantee or offers fixed spreads. Using USDT for deposits can also expose you to crypto volatility, which might affect your overall trading costs.

1. Check Broker Execution Type
   Before depositing via UPI or IMPS, verify if your broker uses ‘market execution’ or ‘request quote’ execution. Market execution reduces requotes.
2. Use Pending Orders
   Place limit orders instead of market orders to avoid requotes. Set your price and let the broker execute when the market reaches it.
3. Avoid High Volatility Times
   Refrain from trading during RBI announcements, US NFP data, or major news events unless you use pending orders.
4. Test with a Demo Account
   Use a demo account to simulate trades with your broker. Check how often requotes occur and decide if the broker is suitable for your style.

Requote vs Slippage for India Traders
Requotes require your explicit acceptance, while slippage executes the trade automatically at a different price. For India traders, slippage is more common in high-liquidity pairs like USD/INR, while requotes are more frequent with brokers using ‘request quote’ execution. SEBI-regulated brokers must disclose both. If you prefer to avoid requotes, choose a broker with ‘market execution’ and accept that slippage may occur. For small accounts, requotes can be more costly because you have to manually accept a worse price, which can lead to emotional decisions.

When you place a market order in forex, your broker attempts to execute it at the current bid/ask price. If the price moves before the broker can fill your order, they send a requote — a new price you must accept or reject. For India traders, this process is influenced by the liquidity of INR pairs. For example, if you try to buy USD/INR at 83.50 and the market moves to 83.52, your broker may requote you at 83.52. You can accept and enter the trade at a worse price, or reject and wait. Brokers using ‘request quote’ execution are more prone to requotes, while ‘market execution’ brokers typically fill orders at the next available price without asking.

Example 1: UPI Deposit Trade
You deposit ₹10,000 via UPI and want to buy USD/INR at 83.50. You click ‘Buy’ and the broker requotes you at 83.52. If you accept, you pay ₹2 more per dollar. On a 0.1 lot (10,000 units), that’s an extra ₹200. This small difference can eat into your profits quickly.

Example 2: News Event
During the RBI rate decision, USD/INR moves rapidly. You try to sell at 83.60, but the broker requotes you at 83.58. Accepting means you sell at a lower price, losing 2 pips. On a standard lot (1,000 units), that’s ₹2,000 lost. To avoid this, use pending orders or avoid trading during news.

SEBI regulates forex trading in India, restricting it to seven currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR, and others). All trades must be done through SEBI-registered brokers or recognized stock exchanges. SEBI requires brokers to provide transparent execution policies, including how requotes and slippage are handled. If a broker frequently requotes without clear disclosure, it may violate SEBI’s code of conduct. India traders should only use brokers that are SEBI-compliant or are reputable international brokers with clear execution terms. Always check the broker’s SEBI registration number or verify their status on the SEBI website. Trading with unregulated offshore brokers exposes you to higher requote risks and potential fraud.

• Use Limit Orders: Instead of market orders, set limit orders to avoid requotes. This gives you control over entry price.
• Choose Brokers with Fast Execution: Look for brokers that offer ‘instant execution’ or ‘market execution’ with low latency. Test with a demo account.
• Monitor News Events: Avoid trading during RBI policy decisions, US NFP, or other high-impact events. If you must trade, use pending orders.
• Check Broker Spreads: Fixed spreads can reduce requotes, but variable spreads may offer better pricing. Compare both options for your INR pairs.
• Use Smaller Lot Sizes: Trading micro or mini lots reduces the financial impact of requotes. Start with 0.01 lots to test execution.

Requotes are a common part of forex trading, especially for India traders dealing with INR pairs and smaller accounts. By understanding what requotes are, how they happen, and how to avoid them, you can reduce unnecessary costs. Always choose a broker with fast execution, use limit orders, and avoid trading during high volatility. Before depositing via UPI, IMPS, or USDT, test the broker’s execution with a demo account. For more educational resources on forex trading in India, explore our guides on comparebroker.io. Start your trading journey with confidence by selecting a SEBI-compliant broker today.