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

What is a Requote?

A requote happens when you place a market order at a specific price, but the broker cannot fill that order at that exact price. Instead, the broker sends a message asking if you accept a new, often less favorable price. For Kuwait traders, this is important because even a 0.5 pip difference on a 1 lot USD trade can mean a $5 difference.

How Requotes Work

When you click 'buy' or 'sell' in your trading platform, your order is sent to the broker. If the broker is a market maker, they may check if they can fill your order at the requested price. If the price has moved, they will send a requote. You then have seconds to accept or reject. If you accept, the trade opens at the new price. If you reject, no trade is made.

Why Requotes Matter for Kuwait Traders

Kuwait traders often trade USD pairs like EUR/USD or GBP/USD. A requote can cause you to miss a breakout or enter at a worse price. For example, if you try to buy EUR/USD at 1.2000 and get a requote to 1.2003, you lose 3 pips immediately. Over many trades, this adds up. Additionally, requotes can cause frustration and emotional trading decisions.

For Kuwait traders, requotes are a real concern when trading with local brokers or international brokers that accept Bank Transfer, Skrill, or USDT deposits. Many Kuwait traders prefer USDT for fast deposits, but the execution model matters more than payment method. The local financial authority in Kuwait oversees broker operations but does not specifically ban requotes. Kuwait traders should prioritize brokers that offer instant execution with no requotes. When depositing via Bank Transfer, funds may take 1-3 days, so testing a broker's execution with a small deposit is wise before committing larger amounts. Skrill users should also check if the broker offers fixed spreads or variable spreads, as variable spreads can increase requote frequency during news events.

1. Choose the Right Broker
   Select a broker that uses ECN or STP execution models, which are less likely to requote. Check if the broker is regulated by the local financial authority in Kuwait or by a reputable international regulator.
2. Use Limit Orders
   Instead of market orders, use limit orders to specify the exact price you want. This avoids requotes because the trade only executes at your price or better.
3. Trade During High Liquidity
   Trade when the London and New York sessions overlap (1 PM to 5 PM Kuwait time). Liquidity is highest then, reducing requote chances.
4. Test with a Demo Account
   Before depositing real funds via Bank Transfer or USDT, test the broker's execution on a demo account. Place several market orders during news events to see if requotes occur.

Requotes vs Instant Execution: Instant execution brokers fill your order at the requested price or reject it without a requote. This is faster but may result in slippage. For Kuwait traders, instant execution is often preferred for scalping. Requote brokers give you a choice but delay execution. Compare: if you trade with a local broker regulated by the local financial authority, ask if they offer instant execution or requote execution. Most ECN brokers offer instant execution, while market makers use requotes.

When you place a market order in your trading platform, the request goes to your broker's server. If the broker is a market maker, they check their internal liquidity. If the price you requested is no longer available, the broker sends a requote to your platform. A pop-up window appears showing the new price and asking you to accept or reject. For Kuwait traders, this process takes 1-3 seconds, which can be critical during fast markets. The new price is usually less favorable by 1-5 pips. For example, if you try to sell USD/KWD at 0.3070, a requote might offer 0.3068, losing 2 pips.

Example 1: Ahmed in Kuwait wants to buy EUR/USD at 1.2000. He places a market order. His broker sends a requote: 'New price 1.2003. Accept?' Ahmed accepts and buys at 1.2003. He lost 3 pips from his intended entry. On a 1 lot trade, that's $30. Example 2: Fatima tries to sell GBP/USD at 1.3500 during a news event. Her broker requotes at 1.3505. She rejects the requote and waits. The price drops to 1.3490, and she enters a limit order there. She saved 15 pips by rejecting. These examples show how requotes affect Kuwait traders' USD-based profits.

The local financial authority in Kuwait oversees forex brokers operating in the country. While it does not have a specific rule banning requotes, it requires brokers to act in the best interest of clients. Kuwait traders should only trade with brokers that are licensed by the local financial authority or by recognized international regulators. Regulation ensures that brokers follow fair execution practices. If you experience excessive requotes, you can file a complaint with the local financial authority. Always check the broker's license number and verify it on the regulator's website before depositing funds via Bank Transfer, Skrill, or USDT.

• Check Broker Policies: Before opening an account, read the broker's order execution policy. Look for 'no requote' or 'instant execution' guarantees.
• Trade Major Pairs: Major pairs like EUR/USD, GBP/USD, and USD/JPY have higher liquidity, reducing requote chances for Kuwait traders.
• Avoid News Trading: During major economic releases, requotes are common. If you trade news, use limit orders or wait for volatility to settle.
• Use VPS: A Virtual Private Server (VPS) can reduce latency, helping your orders reach the broker faster and potentially avoiding requotes.
• Monitor Spreads: Wide spreads often lead to requotes. Trade when spreads are tight, typically during high liquidity hours.

Requotes are a common part of forex trading, especially with market maker brokers. For Kuwait traders, understanding requotes helps you choose better brokers and improve your trading results. To minimize requotes, use ECN/STP brokers, trade during high liquidity, and use limit orders. Always test a broker with a demo account before depositing real funds via Bank Transfer, Skrill, or USDT. For more educational content and broker comparisons, visit comparebroker.io and make informed trading decisions.