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

What Exactly is a Requote?

A requote occurs when you place a market order at a specific price, but by the time the broker processes it, the market has moved. Instead of executing at the original price, the broker sends a message asking if you accept the new price. This is common in fast-moving markets or with brokers that have slower execution speeds.

How Requotes Work in Practice

Imagine you want to buy EUR/USD at 1.1000. You send a buy order. The broker's system checks if that price is still available. If not, you get a pop-up or message: 'Price changed. Do you accept 1.1005?' You can accept, reject, or cancel. For Palau traders using USD, this small difference can add up, especially with larger lot sizes.

Why Requotes Matter for Palau Traders

Palau's retail forex traders often use bank transfers or Skrill to fund accounts, which can take time. If you are trading with a broker that requotes frequently, you may miss opportunities or get worse fills. Also, many Palau traders start with small accounts, so requotes can eat into profits quickly. Using brokers with no requote policies, like ECN brokers, is recommended.

Real Example with USD

Suppose you have a $1,000 account and trade 0.1 lots of USD/JPY. You try to sell at 110.00, but the broker requotes at 109.95. That 5-pip difference costs you about $4.50. Over many trades, this reduces your returns. In Palau, where every dollar counts, avoiding requotes is smart.

For Palau traders, the local trading environment adds unique challenges. Most retail traders in Palau use bank transfers, Skrill, or USDT to deposit funds. Bank transfers can take 1-3 business days, so if you get a requote during that time, you may not have funds available to adjust. Skrill and USDT are faster but still subject to broker processing times. The local financial authority in Palau does not have specific rules on requotes, but it requires brokers to be transparent about execution policies. Palau traders should always check a broker's order execution type—market maker brokers are more prone to requotes, while ECN/STP brokers usually offer instant execution. Always read the fine print in your broker's terms of service regarding requotes and slippage.

1. Check Broker Execution Type
   Before opening an account, confirm if your broker uses market maker or ECN/STP execution. ECN brokers rarely requote. Look for 'no requote' policies in their documentation.
2. Use Limit Orders
   Instead of market orders, use limit orders to specify the exact price you want. This avoids requotes because the trade only executes if the price is available.
3. Trade During High Liquidity Hours
   Trade during London or New York sessions when liquidity is high. Avoid Asian session or major news releases if your broker is slow.
4. Test with a Demo Account
   Open a demo account with your chosen broker and execute several trades during volatile times. Note how often requotes appear. This helps you decide if the broker is suitable for your Palau-based trading.

Requotes vs. Instant Execution: With instant execution, the broker tries to fill your order at the requested price. If not available, you get a requote. With market execution, the order fills at the next best price automatically (slippage). For Palau traders, instant execution with requotes gives more control, while market execution is faster. Many Palau traders prefer market execution for scalping but accept slippage risk.

When you place a market order, your broker attempts to fill it at the current price. If the price changes before execution, the broker sends a requote with a new price. For Palau traders using USD accounts, this often happens during low liquidity times like early morning or during news events. The broker's system displays the new price and asks for confirmation. You can accept, reject, or cancel. If you accept, the trade is executed at the new price. If you reject, the order is canceled. This process protects you from unexpected slippage but can be frustrating.

Example 1: You have a $500 account and trade 0.05 lots of GBP/USD. You want to buy at 1.3000. The broker requotes at 1.3005. You accept. The 5-pip difference costs you $2.50. Over 100 trades, that's $250 lost. Example 2: You try to sell USD/CHF at 0.9200 during a news release. The broker requotes at 0.9195. You reject and wait for a better price. In Palau, where internet can be slow, requotes are more common. Using a VPN or dedicated line can help.

The local financial authority in Palau oversees forex brokers operating in the country. While they do not have specific rules on requotes, they require brokers to act in the best interest of clients. This means brokers must disclose their execution policies clearly. Palau traders should only trade with brokers licensed by the authority or reputable international regulators. If a broker repeatedly requotes without justification, it may be considered unfair practice, and you can report it. Always keep records of your trades and requote instances as evidence.

• Choose ECN Brokers: ECN brokers match orders directly with liquidity providers, reducing requote chances. They are ideal for Palau traders who want fast execution.
• Avoid News Trading: Major economic releases cause extreme volatility. If you must trade news, use limit orders or a broker with guaranteed stop losses.
• Use Stable Internet: Palau's internet can be inconsistent. A stable connection reduces the delay between your order and broker response, lowering requote risk.
• Monitor Spreads: Wide spreads often indicate low liquidity, which increases requote probability. Trade during peak hours.
• Check Broker Reputation: Read reviews from other Palau traders on forums. Frequent requotes are a red flag.

Requotes are a common challenge for forex traders, especially in Palau where retail traders rely on USD accounts and local payment methods like bank transfers, Skrill, and USDT. By understanding what requotes are and how to avoid them, you can improve your trading performance. Choose brokers with no requote policies, use limit orders, and trade during high liquidity hours. Always verify your broker's regulation with the local financial authority. For more educational content tailored to Palau traders, explore comparebroker.io.