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

How Requotes Work in Forex

When you place a market order, you request a specific price. If the market moves quickly, the broker cannot fill your order at that price and sends a requote with a new price. For example, if you want to buy USD/NOK at 10.5000, but the price jumps to 10.5020, the broker offers you 10.5020. You can accept or cancel. This is common in retail forex trading in Norway, especially during news events.

Why Requotes Matter for Norway Traders

Norway traders often trade USD pairs like USD/NOK or EUR/USD. During high volatility, requotes can increase your entry cost. If you trade with a market maker broker, requotes are more frequent. ECN/STP brokers typically reduce requotes but may cause slippage instead. Knowing the difference helps you manage risk.

Requotes and Trading Costs

Each requote can cost you pips. For a Norway trader using a 1:100 leverage on a $10,000 account, a requote of 2 pips on USD/NOK means a loss of $20 on a standard lot. Over many trades, this adds up. Always check your broker's execution policy before depositing via Bank Transfer, Skrill, or USDT.

For Norway traders, requotes are a practical concern when trading through local brokers or international platforms. The local financial authority (Finanstilsynet) regulates forex brokers operating in Norway, ensuring they follow fair execution practices. However, requotes still happen. Many Norway traders fund accounts via Bank Transfer, Skrill, or USDT. While these methods don't cause requotes, they affect how quickly you can act during volatile markets. For instance, USDT deposits are faster than Bank Transfers, allowing you to enter trades sooner and potentially avoid requotes from delayed funding. Always choose a broker with low latency and transparent execution to minimize requotes.

1. Check Broker Execution Model
   Before opening an account, ask if the broker uses market maker or ECN/STP execution. ECN/STP brokers reduce requotes. For Norway traders, this is critical when trading USD/NOK during Norges Bank announcements.
2. Use Limit and Stop Orders
   Instead of market orders, use pending orders to avoid requotes. For example, set a buy limit at 10.5000 for USD/NOK. If the price reaches that level, your order executes without requote.
3. Trade During Low Volatility
   Avoid trading during major news releases like US Non-Farm Payrolls or interest rate decisions. For Norway traders, this means checking the economic calendar for both Norwegian and US events.
4. Test with a Demo Account
   Use a demo account to see how often requotes occur with your chosen broker. Many Norway brokers offer demo accounts funded with virtual USD, so you can test execution speed.

Requotes vs. Slippage: Requotes give you a choice, while slippage does not. For Norway traders, requotes are more common with market maker brokers, which are less popular among experienced traders. Slippage is typical with ECN brokers. Another concept is 'partial fills,' where only part of your order is filled at the requested price. This is common during high volatility. For USD/NOK trading, partial fills can happen during Norges Bank announcements. Understanding these terms helps you choose the right broker for your retail forex trading in Norway.

When you place a market order in forex, your broker sends it to a liquidity provider. If the price changes before execution, the broker returns a requote with a new price. For Norway traders, this is common when trading USD/NOK during European or US sessions. For example, if you try to sell USD/NOK at 10.4500 but the price drops to 10.4480, the broker offers 10.4480. You can accept or decline. This process is instant but can cost you pips. Brokers with faster servers and direct market access reduce requotes.

Example 1: You trade USD/NOK with a $5,000 account. You place a market order to buy at 10.5000. The market moves, and your broker requotes at 10.5020. You accept, paying 2 pips extra. On a standard lot, that's $20 lost. Example 2: You use a limit order to buy USD/NOK at 10.5000. The price reaches 10.5000, and your order fills without requote. This saves you money. For Norway traders, using pending orders is a smart way to avoid requotes, especially when funding accounts via Skrill or USDT for quick deposits.

In Norway, forex brokers must be authorized by Finanstilsynet, the local financial authority. This ensures brokers follow strict rules on client fund segregation and execution transparency. While requotes are not banned, regulated brokers must disclose their execution policy. For Norway traders, this means you can file a complaint if a broker uses requotes unfairly. Always choose a broker regulated by Finanstilsynet or an equivalent EU authority (like CySEC or FCA) to protect your funds. Unregulated brokers may use requotes to manipulate prices, so stick to licensed platforms.

• Choose ECN/STP Brokers: For Norway traders, ECN/STP brokers reduce requotes because they connect directly to liquidity providers. Check if your broker offers this model.
• Monitor News Events: Avoid trading during Norges Bank rate decisions or US employment data. Requotes spike during these times for USD pairs.
• Use VPS for Speed: A Virtual Private Server (VPS) near London or Norway reduces latency, helping you avoid requotes on fast-moving markets.
• Compare Spreads: Brokers with tighter spreads often have better execution. Compare USD/NOK spreads across Norway-licensed brokers.
• Read the Fine Print: Some brokers charge a requote fee or widen spreads during requotes. Always read the terms before depositing via Skrill or Bank Transfer.

Requotes are a natural part of forex trading, especially for Norway traders dealing with USD pairs. By understanding how they work, you can choose the right broker, use pending orders, and trade during optimal hours. Start by checking your broker's execution model and test with a demo account. For a list of Norway-friendly brokers with low requote rates, visit comparebroker.io. Take control of your trading today and minimize unexpected costs.