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

What Exactly is a Requote?

A requote happens when you place a market order or pending order, but the price moves before your broker can execute it. Instead of filling your order at the original price, the broker sends a message asking if you want to trade at a new price. This is common in volatile markets or with dealing desk brokers who have manual intervention.

How Requotes Affect Your Trades

For Seychelles traders, requotes can eat into profits, especially when trading with USD. For example, if you want to buy EUR/USD at 1.1000 but the broker offers 1.1005, you pay 5 pips more. Over many trades, this adds up. Requotes also cause slippage, where your stop-loss or take-profit may be hit at a worse price.

Why Requotes Occur

Requotes occur due to market volatility, low liquidity, or broker execution models. In Seychelles, many retail brokers use market maker models that may requote when prices move fast. News events like US non-farm payrolls often trigger requotes. Also, if your internet connection is slow (common in some parts of Seychelles), the delay can cause requotes.

Requotes vs Slippage

Slippage is when your order is filled at a different price automatically, while a requote gives you a choice to accept or reject. For Seychelles traders, slippage is more common with ECN brokers, while requotes are typical with market makers. Knowing the difference helps you choose the right broker.

For Seychelles traders, requotes are particularly relevant because many local brokers operate as market makers. When you deposit via Bank Transfer, Skrill, or USDT, the speed of funding can affect your ability to enter trades quickly. If you deposit via USDT (crypto), it may be faster than bank transfers, reducing the chance of missing a price. However, requotes still happen if the broker's execution is slow. The local financial authority in Seychelles does not specifically regulate requotes, but it requires brokers to provide fair trading conditions. Always check if your broker is licensed and has transparent execution policies. Using a broker that offers no requotes (like ECN/STP) is recommended for Seychelles traders who want faster fills and lower costs.

1. Choose an ECN/STP Broker
   Look for brokers regulated by the local financial authority in Seychelles that offer direct market access. This reduces requotes significantly.
2. Check Execution Speed
   Test your broker's execution speed using a demo account. Fast execution means fewer requotes, especially during volatile times.
3. Use Limit Orders
   Instead of market orders, use limit orders to specify your desired price. This avoids requotes because the order only fills at your price or better.
4. Trade During Liquid Hours
   Trade when major markets overlap (e.g., London/New York session). Higher liquidity means fewer requotes for Seychelles traders.

Requotes vs Rejection: A requote offers a new price; a rejection cancels your order entirely. For Seychelles traders, a rejection is worse because you miss the trade. Requotes at least give you a chance. However, both are signs of poor liquidity or broker inefficiency. Compare brokers on comparebroker.io to find ones with minimal requotes and rejections.

When you place a market order, your broker sends your request to a liquidity provider. If the price moves before the order is filled, the broker sends a requote with a new price. For example, a Seychelles trader wants to buy 1 lot USD/SCR at 14.50. The broker's system shows the price has moved to 14.55. The broker asks: 'Accept 14.55 or cancel?' This is a requote. It works as a safety mechanism but can be frustrating for fast traders.

Example 1: A Seychelles trader deposits $1,000 via Skrill. He tries to sell EUR/USD at 1.1050. Market moves fast, and the broker requotes at 1.1053. He accepts and loses 3 pips. Over 10 trades, that's 30 pips lost to requotes.
Example 2: Another trader uses a limit order to buy USD/CHF at 0.9200. The price never reaches that level, so no requote. This shows how limit orders avoid requotes.

The local financial authority in Seychelles (Financial Services Authority - FSA) regulates forex brokers. While the FSA does not have specific rules about requotes, it requires brokers to act in the best interest of clients. Seychelles traders should only use brokers with an FSA license. This ensures that brokers follow fair execution practices. If you experience excessive requotes, you can file a complaint with the FSA. However, the FSA's enforcement is limited, so personal due diligence is essential. Always check the broker's regulatory status on the FSA website before depositing funds.

• Test Execution First: Before depositing real USD, test your broker's execution on a demo account to see how often requotes occur.
• Use VPS for Speed: A Virtual Private Server (VPS) near your broker's server reduces latency and requotes for Seychelles traders.
• Avoid News Trading: Major news events cause extreme volatility. Seychelles traders should avoid trading during these times to prevent requotes.
• Check Spreads: Some brokers widen spreads during requotes. Compare spreads before choosing a broker.
• Read Broker Terms: Understand your broker's requote policy. Some brokers have "no requote" guarantees but may still slippage.

Requotes are a common part of forex trading, but they don't have to ruin your experience in Seychelles. By choosing the right broker (ECN/STP), using fast deposit methods like USDT or Skrill, and trading during liquid hours, you can minimize requotes. Always test your broker's execution on a demo account first. Remember, knowledge is your best tool. Start applying these tips today to trade smarter in Seychelles. For more guides, visit comparebroker.io.