What is a Requote in Forex? Complete Guide for Nigeria Traders

What Exactly is a Requote in Forex?

A requote happens when you place a market order (buy or sell) at a specific price, but the market moves before your broker can execute it. The broker then 'requotes' you with a new price. You can either accept the new price or cancel the order. In fast-moving markets, requotes are common.

How Does a Requote Work?

Imagine you want to buy USD/NGN at 1,500. You click 'buy', but the price instantly jumps to 1,505. The broker shows you a pop-up: 'Price changed. Accept 1,505?' If you accept, you buy at the higher price. If you decline, the order is cancelled. This is a requote.

Why Do Requotes Matter for Nigeria Traders?

Nigeria's forex market is influenced by CBN policies, oil prices, and political events. When the NGN weakens suddenly, requotes become frequent. For example, if the CBN announces a new exchange rate band, USD/NGN can spike 50–100 pips in seconds. Traders using market orders are often requoted at worse prices, eating into potential profits.

Requotes vs. Slippage: What's the Difference?

Slippage is when your order is filled at a different price without your approval. A requote gives you a choice. For Nigeria traders, requotes are more common on mobile platforms with slower internet. Slippage often happens during news events on desktop platforms.

How to Handle Requotes as a Nigeria Trader

To reduce requotes, use limit orders instead of market orders. Choose brokers with 'instant execution' and low requote rates. Avoid trading during major NGN-related news (e.g., CBN MPC meetings). Always use a stable internet connection, especially on mobile.

For Nigeria traders, requotes are not just a technical issue—they are a cost of doing business in a volatile currency environment. The Naira's frequent fluctuations mean that requotes can happen several times a day, especially during afternoon London-New York overlap when liquidity is highest. Many Nigeria traders fund accounts via Flutterwave or GTBank, but these payment methods do not affect requote rates. However, using USDT (Tether) to fund accounts can help avoid NGN conversion delays that might worsen requote timing. Mobile trading is dominant in Nigeria, and requotes are more common on mobile apps due to slower data processing. To mitigate this, traders should use brokers with mobile-optimised platforms and fast execution servers. SEC Nigeria does not explicitly ban requotes, but it requires brokers to disclose their execution policies. Always check if your broker is regulated by SEC Nigeria and has a clear requote policy.

1. Understand Your Broker's Execution Type
   Check if your broker uses 'market execution' or 'instant execution'. Instant execution typically has fewer requotes. For Nigeria traders, brokers regulated by SEC Nigeria often offer instant execution.
2. Use Limit Orders Instead of Market Orders
   Limit orders let you set a specific price. If the market moves against you, the order simply won't fill—no requote. This is ideal during NGN volatility.
3. Avoid Trading During Major News Events
   CBN policy announcements, inflation data, and oil price shocks can cause NGN to spike. Avoid placing market orders during these times to reduce requote risk.
4. Test Your Broker's Requote Policy
   Open a demo account and place multiple market orders during volatile hours. Count how many requotes you get. If it's high, consider switching brokers.

Requotes vs. Slippage: Both can affect your trade price. Requotes give you a choice; slippage does not. For Nigeria traders, requotes are more common on mobile platforms, while slippage is more common on desktop platforms during news events. Requotes are generally considered fairer because you can reject the new price. However, in fast markets, requotes can be so frequent that you miss the trade entirely. Some brokers offer 'no requote' policies but may use slippage instead. Always understand your broker's approach before trading.

When you place a market order to buy or sell a forex pair, your broker sends the order to a liquidity provider. If the price moves before the provider can fill it, the provider sends back a new price. Your broker then 'requotes' you with this new price. For example, if you want to sell USD/NGN at 1,500 but the market drops to 1,498, the broker may offer 1,498. You can accept or cancel. This process is automated and happens in milliseconds. For Nigeria traders, requotes are more common on pairs involving NGN (like USD/NGN) because of lower liquidity and higher volatility.

Example 1: Chidi wants to buy USD/NGN at 1,500. He clicks 'buy' on his mobile app. The market moves to 1,503 before execution. The broker requotes him at 1,503. Chidi accepts and buys at the higher price. His profit target is now 10 pips away instead of 13.

Example 2: Funke has a sell order for GBP/NGN at 2,100. During a CBN announcement, the price jumps to 2,105. The broker requotes her at 2,105. Funke declines and waits for the price to return. This saves her 5 pips of loss.

Example 3: A Nigeria trader using GTBank-funded account tries to trade EUR/NGN during low liquidity. The requote is 20 pips worse. He switches to a broker with instant execution and sees fewer requotes.

SEC Nigeria is the primary regulatory body for forex brokers operating in Nigeria. While SEC Nigeria does not have specific rules against requotes, it requires brokers to act in the best interest of clients. Brokers must disclose their order execution policy, including how requotes are handled. If a broker consistently provides unfair requotes, Nigeria traders can lodge a complaint with SEC Nigeria. To stay protected, only trade with brokers that are registered with SEC Nigeria or with top-tier international regulators like the FCA or CySEC. Always verify registration on the SEC Nigeria website before depositing funds.

• Use a VPS or Stable Mobile Connection: Nigeria's mobile network can be unstable. Use a VPS (Virtual Private Server) for automated trading or ensure you have 4G/5G coverage to reduce requotes.
• Trade During High Liquidity Hours: The London-New York overlap (1 PM–5 PM Nigerian time) has higher liquidity, which can reduce requote frequency. Avoid trading during early morning Asian session.
• Set a Maximum Requote Tolerance: Some brokers allow you to set a requote tolerance (e.g., 5 pips). If the requote exceeds this, the order cancels. Use this feature to control costs.
• Monitor NGN News Feeds: Use apps like Bloomberg or Reuters to track CBN announcements. Set alerts for NGN-related events to avoid trading during volatility.
• Practice on a Demo Account: Before trading live, practice on a demo account with real-time NGN pairs. This helps you understand requote patterns on your chosen broker.

Requotes are a reality for forex traders in Nigeria, especially given the Naira's volatility and the widespread use of mobile trading. By understanding what requotes are, how they work, and how to minimise them, you can trade more confidently and reduce unexpected costs. Choose a broker regulated by SEC Nigeria, use limit orders, and avoid trading during major NGN news events. Ready to start? Compare top-rated brokers for Nigeria traders on CompareBroker.io and find one with low requote rates and fast execution today.