What is a Requote in Forex? A Complete Guide for Nepal 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 due to rapid market movements. Instead, the broker sends a 'requote' with a new price. You can accept or reject it. For Nepal traders, this is common when trading USD pairs during news releases or when using brokers with dealing desk models.

How Requotes Work in Practice

Imagine you want to buy USD/JPY at 150.00. You click 'buy,' but the market moves to 150.02 before your order reaches the broker. The broker sends a requote: 'New price is 150.02. Accept?' If you accept, you pay 2 pips more. If you reject, the trade is cancelled. For Nepal traders using USD accounts, even small requotes can eat into profits, especially with high leverage.

Why Requotes Matter for Nepal Traders

Nepal's retail forex market is growing, but many traders use local brokers with limited liquidity. Requotes are more common with these brokers because they rely on external liquidity providers. Using Skrill, Bank Transfer, or USDT deposits doesn't affect requotes directly, but broker choice does. Always test execution speed with a demo account first.

For Nepal traders, requotes are particularly relevant because many retail forex brokers operate with lower liquidity than international ones. When you deposit via Bank Transfer, Skrill, or USDT, your funds are safe, but execution quality varies. The local financial authority in Nepal does not regulate forex brokers directly, so you must choose wisely. Requotes can increase your trading costs, especially when scalping or trading during Asian session lulls. To minimize requotes, use brokers with ECN execution, trade during London or New York sessions, and avoid trading during major news events. Always check broker reviews and test with small amounts first.

1. Choose the Right Broker
   Select a broker with ECN or STP execution to reduce requotes. Avoid dealing desk brokers for Nepal traders.
2. Test Execution Speed
   Open a demo account and place market orders during volatile times. Note how often requotes occur.
3. Use Limit Orders
   Instead of market orders, use limit orders to avoid requotes. This ensures you only trade at your desired price.
4. Trade During Liquid Hours
   Trade during London or New York sessions when liquidity is high. Avoid Asian session lulls for major pairs.

Requotes vs. Slippage: Requotes give you control—you can accept or reject. Slippage is automatic and happens instantly. For Nepal traders, requotes are more common with market maker brokers, while slippage is typical with ECN brokers. Both can increase costs, but requotes allow you to avoid bad fills. Choose based on your trading style: scalpers prefer ECN to avoid requotes, while swing traders may tolerate requotes for better spreads.

When you place a market order, your broker sends it to a liquidity provider. If the price changes before execution, the broker sends a requote with a new price. For Nepal traders using USD accounts, this process can take milliseconds to seconds, depending on internet speed and broker infrastructure. The requote appears as a pop-up or notification asking you to accept or reject the new price. Accepting means your trade goes through at the new price; rejecting cancels the order.

Example: You want to sell USD/NPR at 130.00. You click 'sell,' but the market drops to 129.98. The broker sends a requote: 'New price is 129.98. Accept?' If you accept, you sell at 2 pips less. If you reject, you miss the trade. For a standard lot (100,000 units), 2 pips equals $20 USD. Over many trades, requotes can significantly reduce your profits. Always factor in requote costs when calculating your strategy.

The local financial authority in Nepal does not directly regulate forex brokers. This means Nepal traders must rely on international regulators like FCA, CySEC, or ASIC. Always choose brokers with strong regulation to ensure fair execution and protection against requote abuse. Unregulated brokers may use requotes to delay orders or widen spreads unfairly. Check your broker's license and read their execution policy before depositing via Bank Transfer, Skrill, or USDT.

• Test Before You Invest: Always use a demo account to see how often requotes occur with your chosen broker.
• Trade During Peak Hours: Trade during London or New York sessions for better liquidity and fewer requotes.
• Avoid News Events: Major news releases cause high volatility and requotes. Use pending orders instead.
• Use Limit Orders: Limit orders avoid requotes because they only execute at your specified price or better.
• Check Broker Terms: Read the fine print on execution policies. Some brokers charge requote fees.

Requotes are a common part of retail forex trading, especially for Nepal traders using local brokers. Understanding how they work and how to avoid them can save you money and frustration. Choose an ECN broker, trade during liquid hours, and use limit orders to minimize requotes. Start with a demo account to test execution quality before depositing real USD. For more tips, explore our guide on broker selection for Nepal traders.