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

What Exactly is a Requote?

A requote happens when you place a market order at a specific price, but the broker cannot fill it at that price because the market has moved. Instead, the broker sends you a new quote – a requote – with a different price. You must accept or reject this new price. Requotes are common in volatile markets or when liquidity is low.

How Requotes Work in Practice

Imagine you want to buy 10,000 USD/ILS at 3.50. You click buy, but before the order is executed, the price moves to 3.51. The broker sends a requote: 'Price changed to 3.51. Accept or reject?' You must decide quickly. If you accept, you buy at the new price. If you reject, the trade is canceled.

Why Requotes Matter for Israel Traders

For retail forex traders in Israel, requotes can lead to higher costs and missed trades. When trading USD pairs, even a 1-pip difference can affect profitability. Requotes are more common with brokers that use a dealing desk (DD) model. Brokers regulated by the Israel financial authority often require transparent execution policies, but requotes can still occur during fast-moving markets.

Requotes vs. Slippage

Requotes are different from slippage. Slippage happens when your order is filled at a worse price automatically. Requotes give you a choice. Both can be costly for Israel traders, but requotes offer a chance to cancel the trade. However, requotes can also cause delays, which may lead to missed opportunities in fast-moving markets.

For Israel traders, requotes are particularly relevant when trading during overlapping sessions of the Tel Aviv Stock Exchange and major forex markets. Many retail traders in Israel use Bank Transfer, Skrill, or USDT to fund accounts, and requotes can affect the timing of deposits and withdrawals. The Israel financial authority (ISA) oversees forex brokers operating in Israel, requiring them to provide clear information about order execution. However, not all brokers are regulated locally – some offshore brokers may use requotes more frequently. It's crucial for Israel traders to verify broker regulation and execution policies before depositing funds. Using local payment methods like Bank Transfer may involve longer processing times, so requotes during deposit or withdrawal periods can add complexity. Always check if your broker offers instant execution or fixed spreads to minimize requote risks.

1. Choose a Broker with No Requotes
   Select a broker regulated by the Israel financial authority that offers straight-through processing (STP) or electronic communication network (ECN) execution. These models reduce requote chances.
2. Use Limit Orders Instead of Market Orders
   Limit orders specify your desired price, so the broker only fills the order if that price is available. This avoids requotes entirely for Israel traders.
3. Check Execution Policy Before Depositing
   Review the broker's terms for requote policies. Many Israel-friendly brokers display this in their order execution section. Use demo accounts to test.
4. Monitor Volatile Times
   Avoid trading during major news releases or when the USD/ILS pair is highly volatile. Requotes are more common during these periods.

Requotes are often confused with slippage, but they are distinct. Slippage automatically fills your order at the next available price, while requotes give you a choice. For Israel traders, requotes can be safer because you can cancel the trade if the new price is unfavorable. However, requotes can cause delays, especially during fast markets. Another concept is 'instant execution' – this means the broker tries to fill at your requested price but may requote if unavailable. 'Market execution' fills at the best available price, often causing slippage. Understanding these differences helps Israel traders select the right broker for their strategy.

When you place a market order in forex, your broker tries to fill it at the current price. If the market moves before the order is executed, the broker cannot honor your requested price. The broker then sends a requote – a new price – and asks if you want to accept it. For Israel traders, this often happens when trading USD/ILS or major pairs during overlapping sessions. For example, if you try to buy USD/ILS at 3.50 but the price jumps to 3.51, the broker will requote you at 3.51. You can accept, reject, or modify the order. Requotes are more common with brokers that use a dealing desk, as they act as market makers.

Example 1: You deposit $1,000 via Bank Transfer into your Israel forex account. You want to buy 10,000 USD/ILS at 3.50. You click market buy, but the price moves to 3.51. The broker requotes you at 3.51. You accept, and your trade is executed at the higher price. Your cost increases by 100 ILS.

Example 2: You use Skrill to deposit $500 and trade EUR/USD. You place a sell order at 1.1000, but the market drops to 1.0995. The broker requotes you at 1.0995. You reject the requote, and your order is canceled. You avoid a loss but miss the trade.

Example 3: Using USDT, you fund your account with $2,000. You set a limit order to buy USD/ILS at 3.48. The market reaches 3.48, and your order fills without a requote because the price was guaranteed.

The Israel financial authority (ISA) regulates forex brokers operating in Israel, requiring them to follow strict rules on transparency and client protection. While the ISA does not specifically ban requotes, brokers must disclose their execution policies clearly. For Israel traders, choosing an ISA-regulated broker ensures that requote practices are fair and transparent. However, many offshore brokers also accept Israel clients – these may not follow ISA rules and could use requotes more frequently. Always check the broker's license and read the terms regarding requotes. The ISA also requires brokers to provide negative balance protection, which can help if requotes lead to unexpected losses.

• Test with a Demo Account: Before depositing real funds via Bank Transfer or Skrill, test the broker's execution speed and requote frequency using a demo account. This helps you avoid surprises.
• Use Fixed Spread Accounts: Fixed spread accounts often have fewer requotes because the broker guarantees the spread. This is beneficial for Israel traders who trade USD pairs frequently.
• Avoid Trading During News: Major economic news from Israel or the US can cause requotes. Check the economic calendar and avoid trading during high-impact events like interest rate decisions.
• Check Broker Reviews: Look for Israel-specific broker reviews that mention requote frequency. Other traders' experiences can help you choose a reliable broker.
• Consider VPS for Scalping: If you scalp, use a Virtual Private Server (VPS) to reduce latency. Requotes are more common with slow internet connections.

Requotes are a common part of forex trading, especially in volatile markets. For Israel traders, understanding requotes helps you choose the right broker and execution method. To minimize requotes, opt for brokers regulated by the Israel financial authority, use limit orders, and avoid trading during high-impact news. Always test a broker's execution with a demo account before depositing funds via Bank Transfer, Skrill, or USDT. By being informed, you can trade more confidently and reduce unnecessary costs. For more educational content tailored to Israel traders, visit CompareBroker.io.