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

What Exactly is a Requote?

A requote is a message from your forex broker indicating that the price you requested is no longer available. The broker then offers you a new price, which you can accept or reject. This happens because market prices move quickly, especially in fast-moving conditions like economic news releases.

How Does a Requote Work?

When you place a market order, your broker tries to execute it at the current price. If the price changes before execution, the broker sends a requote with the updated price. For example, if you want to buy EUR/USD at 1.1050, but the market moves to 1.1052, the broker may offer you 1.1052. You then decide whether to accept or cancel the trade.

Why Do Requotes Matter for Malta Traders?

For Malta-based retail forex traders, requotes can affect your trading strategy and profitability. If you trade with USD as your base currency, a requote can change your entry or exit point, impacting your potential profit or loss. This is especially important when trading during European or US market sessions, which are popular among Malta traders.

Example of a Requote in USD Trading

Imagine you are trading GBP/USD and want to buy at 1.3000. You place a market order, but the price moves to 1.3005 before execution. Your broker sends a requote offering 1.3005. If you accept, your trade opens at a higher price, reducing your potential profit. If you reject, you miss the trade. This scenario is common for Malta traders using standard retail accounts.

For Malta traders, requotes are particularly relevant because many local traders use payment methods like Bank Transfer, Skrill, and USDT to fund their forex accounts. These methods often involve small delays, but requotes are about trade execution, not funding. However, understanding requotes helps you manage your account balance more effectively. The Malta Financial Services Authority (MFSA) regulates forex brokers in Malta, requiring them to disclose their execution policies. This means you can check if your broker uses 'instant execution' (which may cause requotes) or 'market execution' (which may cause slippage). Always read your broker's terms to know what to expect. Many Malta traders prefer brokers with no requote policies, especially when trading high-volatility pairs like USD/JPY or GBP/USD. Using limit orders instead of market orders can also help you avoid requotes entirely.

1. Check Your Broker's Execution Type
   Log into your broker's platform and review their order execution policy. Look for 'instant execution' (requotes possible) or 'market execution' (slippage possible). Contact support if unclear.
2. Use Limit Orders
   Instead of market orders, place limit orders to specify your exact entry price. This avoids requotes because the order only executes at your price or better.
3. Trade During High Liquidity
   Trade major USD pairs during overlapping market sessions (e.g., London and New York) when liquidity is high. This reduces the chance of requotes.
4. Monitor Economic News
   Avoid trading during major economic announcements like NFP or ECB meetings. Volatility spikes can trigger requotes. Use a forex calendar to plan your trades.

Requotes vs. Re-quotes (same concept): Some traders confuse requotes with re-quotes, but they are the same. Another related term is 'partial fill,' where only part of your order is executed at the requested price. For Malta traders, partial fills are rare in retail forex but common in CFDs. The main difference is control: requotes let you decide, while slippage and partial fills do not. Compare your broker's policy on execution types to choose what suits your trading style. For example, if you scalp, you may prefer slippage over requotes to avoid delays. Always test with a small deposit first.

When you place a market order in forex, your broker sends your request to the liquidity provider. If the price has changed in the milliseconds it takes to process, the provider sends back a new price. Your broker then shows you this new price as a requote. For Malta traders using USD accounts, this often happens during news events like US Non-Farm Payrolls or when trading volatile pairs like USD/CAD. The process is automated, but you must manually accept or reject the requote. Some brokers allow you to set automatic acceptance of requotes within a certain slippage range, but this is less common. Understanding this mechanism helps you react quickly when trading from Malta.

Example 1: You trade EUR/USD with a $1,000 account funded via Skrill. You want to buy at 1.1200, but the market moves to 1.1203. The broker sends a requote for 1.1203. You accept, and your trade opens 3 pips higher. If the trade goes to 1.1210, you profit 7 pips instead of 10. Example 2: You trade USD/JPY and set a limit order at 110.50. The market never reaches that price, so no requote occurs. Example 3: During a Bank of England rate decision, you trade GBP/USD and get multiple requotes. You reject them and wait for stability. These examples show how requotes affect your USD-based trades in Malta.

The Malta Financial Services Authority (MFSA) is the primary regulator for forex brokers in Malta. It requires brokers to follow strict rules on order execution, including transparent requote policies. For Malta traders, this means you have the right to know how your broker handles requotes. The MFSA also enforces client fund segregation and leverage limits (up to 30:1 for retail traders under ESMA rules). Always check that your broker is listed on the MFSA's official register. If a broker is not regulated by the MFSA or another EU authority, avoid them. Trading with an unregulated broker increases your risk of requote abuse or outright fraud. Use the MFSA's website to verify licenses before depositing funds.

• Use a Demo Account: Practice trading with a demo account to see how requotes behave with your chosen broker. This is free and helps you avoid real losses.
• Set Slippage Tolerance: Some platforms allow you to set slippage tolerance. This can reduce requotes by allowing small price changes automatically.
• Trade Major Pairs: Stick to major pairs like EUR/USD or USD/JPY, which have high liquidity and fewer requotes compared to exotic pairs.
• Check Internet Speed: A stable internet connection reduces delays in order execution, lowering requote chances. Use a wired connection if possible.
• Monitor Spreads: Wide spreads often lead to requotes. Trade during low-spread hours, like early London session, for better prices.

Requotes are a normal part of forex trading, but they can impact your profitability if not managed properly. For Malta traders, the key is to choose a regulated broker, understand their execution policy, and use tools like limit orders to minimize requotes. Start by testing your broker with a small deposit using Skrill or USDT, and practice on a demo account. Remember, the Malta Financial Services Authority is your ally—always trade with licensed brokers. For more educational content on forex trading in Malta, visit comparebroker.io and explore our guides on payment methods, broker selection, and risk management. Happy trading!