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

What Exactly is a Requote?

A requote is a message from your broker saying that the price you wanted to trade at is no longer available. Instead, they offer you a new price, usually with a slightly wider spread. For example, if you try to buy EUR/USD at 1.1050, but the market has moved to 1.1052, the broker may ask if you want to buy at 1.1052 instead. This can be frustrating, especially in fast-moving markets.

How Does a Requote Affect Mozambique Traders?

Mozambique traders often trade in USD pairs, and requotes can impact profitability. If you are trading with a small account, even a 1-pip requote can eat into your profits. Requotes are more common with brokers that use a market maker model, which is still found among some international brokers serving Mozambique. To avoid requotes, many local traders prefer ECN brokers that offer direct market access.

Real Example for Mozambique Traders

Imagine you want to sell USD/MZN (US Dollar vs Mozambican Metical) at 63.50. You place a market order, but your broker requotes you at 63.48. This means you enter the trade at a worse price, potentially losing 2 pips before the trade even starts. Over many trades, these small losses add up.

When Do Requotes Happen Most?

Requotes are most common during high-impact news events (like US Non-Farm Payrolls), during market open hours, or when liquidity is low (e.g., late Friday afternoons). For Mozambique traders, requotes may also occur if your internet connection is slow, causing your order to reach the broker after the price has changed.

For Mozambique traders, requotes are a real concern because many local traders use international brokers that may have different execution models. When depositing via Bank Transfer, Skrill, or USDT, you need to be aware of the broker's execution policy. Some brokers popular in Mozambique do not clearly advertise their requote policy, so it's important to read the terms or test with a demo account first. The local financial authority in Mozambique does not specifically regulate forex requotes, but it does oversee financial services. This means you must rely on broker transparency and choose wisely. If you frequently get requotes, consider switching to an ECN broker that offers faster execution and fewer requotes, even if the spreads are slightly higher.

1. Check Broker Execution Type
   Before depositing via Skrill or USDT, confirm whether the broker offers instant execution or market execution. Instant execution usually requotes, while market execution may result in slippage instead.
2. Use a Demo Account
   Test the broker’s execution speed and requote frequency using a demo account. This is free and helps you avoid real losses.
3. Avoid High-Impact News
   During news releases like US interest rate decisions, requotes are more common. If you must trade, use limit orders instead of market orders.
4. Upgrade Your Internet
   A stable internet connection reduces the chance of requotes due to delayed order transmission. Consider a wired connection or a reliable mobile data plan.

Requote vs Instant Execution: With instant execution, the broker must fill your order at the requested price or requote. With market execution, the broker fills at the next available price without asking. For Mozambique traders, market execution can lead to slippage, while instant execution leads to requotes. Neither is perfect, but requotes give you control. Many local traders prefer instant execution for smaller trades and market execution for larger ones.

When you place a market order in forex, your broker tries to fill it at the current price. If the price changes before your order is processed, the broker sends a requote offering the new price. For example, if you want to buy USD/MZN at 63.50, but the market moves to 63.52, the broker will ask if you accept 63.52. You can accept or reject. This process is common with market maker brokers and during volatile periods. For Mozambique traders, requotes can happen more often if your internet connection is slow or if the broker has limited liquidity providers.

Example 1: João in Maputo wants to sell EUR/USD at 1.1050. He clicks sell, but the broker requotes at 1.1048. He accepts and sells at a worse price. This small difference can cost him $2 per mini lot. Example 2: Maria in Beira tries to buy GBP/USD during the London open. The broker requotes three times before she finally gets filled at a higher price. She loses potential profit. These examples show how requotes affect real trades in Mozambique.

The local financial authority in Mozambique oversees financial services but does not specifically regulate forex trading or requotes. This means Mozambique traders must rely on international regulators like the FCA, CySEC, or FSCA for protection. When choosing a broker, ensure it is licensed by a reputable body. The lack of local regulation makes it even more important to understand execution models and requote policies. Always read the broker's terms and test with a demo account before depositing real funds via Skrill or USDT.

• Trade During Liquid Hours: For Mozambique traders, the best time to avoid requotes is during the London-New York overlap (13:00-17:00 GMT), when liquidity is highest.
• Use Limit Orders: Instead of market orders, use limit orders to specify the exact price you want. This avoids requotes entirely.
• Test with Small Lots: Start with micro lots (0.01) to see how often requotes occur with your broker before risking larger amounts.
• Monitor Spreads: If spreads widen suddenly, requotes are more likely. Avoid trading during these times.
• Choose a Reliable Broker: Research brokers that are known for fast execution and low requote rates. Read reviews from other Mozambique traders.

Requotes are a common part of forex trading, but they can be managed. For Mozambique traders, the key is to choose a broker with transparent execution, use limit orders, and trade during liquid hours. By understanding requotes, you can avoid unnecessary losses and trade more confidently with USD pairs. Next, test your broker's execution with a demo account and consider switching to an ECN broker if requotes are frequent. Remember, a small change in execution can make a big difference to your bottom line.