What is a Requote in Forex
What Exactly is a Requote?
A requote happens when you place a market order or pending order, but the price has moved before your broker can fill it. Instead of executing at your requested price, the broker asks: 'Do you want to accept this new price?' This is common with market maker brokers that use dealing desk execution. For Poland traders, requotes can occur frequently during news events like NFP or ECB announcements, or when trading less liquid pairs like USD/PLN.
How Requotes Work in Practice
Imagine you want to buy EUR/USD at 1.1000 with 1,000 USD. You click 'buy,' but by the time your order reaches the broker, the price has moved to 1.1005. The broker sends a requote: 'Price is now 1.1005. Accept or reject?' You must decide quickly. If you accept, you enter at a worse price. If you reject, you miss the trade. This delay can be costly, especially for short-term traders in Poland who rely on fast execution.
Why Requotes Matter for Poland Traders
Poland's retail forex market is growing, with many traders using USD-denominated accounts. Requotes can eat into profits, especially when trading with leverage. For example, a 5-pip requote on a 1 standard lot trade equals 50 USD. Over many trades, this adds up. Additionally, Poland traders using Skrill or USDT for deposits may face additional delays if their broker's execution system is not optimized. Choosing a broker with no requote policy or ECN execution is crucial.