What is a Requote in Forex
What Exactly is a Requote?
A requote occurs when you place a market order but the broker's price has moved before execution. Instead of your original price, the broker asks if you want to trade at the new price. This is common in fast-moving markets or when there is low liquidity. For Liechtenstein traders, this is particularly relevant when trading major pairs like EUR/USD during news releases.
How Requotes Work in Practice
Imagine you want to buy 10,000 units of USD/CHF at 0.9200. You click buy, but the broker's price has shifted to 0.9205. The broker shows a pop-up window asking if you accept the new price. If you accept, your order executes at 0.9205; if not, you cancel. This delay can cost you pips, especially in volatile markets.
Why Requotes Matter for Liechtenstein Traders
Liechtenstein's retail forex market is growing, with many traders using local brokers or international ones accepting Bank Transfer, Skrill, and USDT. Requotes can erode profits, particularly for scalpers or day traders. The local financial authority requires brokers to disclose their requote policies, so always check your broker's execution model before trading.