A requote is a notification from a broker indicating that the price at which a trader attempted to execute an order is no longer available. Instead of filling the order at the requested price, the broker offers a new priceโeither higher for buy orders or lower for sell ordersโfor the trader to accept or reject.
Requotes typically occur in fast-moving markets where prices change rapidly between the time a trader submits an order and when the broker attempts to execute it. This delay, often measured in milliseconds, can result in the original price becoming unavailable.
How Requotes Work
When a trader places a market order or pending order at a specific price, the broker attempts to match that order with available liquidity in the market. If the requested price is no longer available due to market movement, the broker’s system generates a requote with the current best available price.
The trader then has several options: accept the new price and execute the trade, reject the requote and cancel the order, or wait and attempt to enter at a different price later.
Common Causes of Requotes
Several factors can trigger requotes:
- High market volatility: During economic news releases or major market events, prices can change extremely quickly, increasing the likelihood of requotes
- Low liquidity: In thinly traded markets or currency pairs, there may not be sufficient orders at the requested price level
- Slow execution speed: Network latency or slower trading platforms can increase the time between order submission and execution
- Large order size: Orders that are large relative to available market depth may not be fully fillable at a single price point
Requotes vs. Slippage
While both requotes and slippage result from price movements between order submission and execution, they function differently. With slippage, the order is automatically executed at the next best available price without trader intervention. With a requote, the broker presents a new price and waits for the trader to accept or reject it before proceeding.
Some brokers use a no-requote model where orders are automatically filled at the best available price, similar to how slippage works, while others require explicit trader acceptance of price changes.
Impact on Trading
Frequent requotes can significantly affect trading performance and strategy execution. Scalpers and day traders who rely on precise entry and exit points may find requotes particularly problematic, as they can prevent timely trade execution and disrupt time-sensitive strategies.
Requotes can also create psychological challenges for traders, as they may feel compelled to accept unfavorable prices to avoid missing trading opportunities, or they may experience frustration when unable to enter trades at desired levels.
Minimizing Requotes
Traders can take several steps to reduce the frequency of requotes:
- Choose brokers with faster execution speeds and better technology infrastructure
- Trade during periods of higher liquidity when price quotes are more stable
- Use limit orders instead of market orders to specify maximum acceptable prices
- Avoid trading during high-impact news events when volatility spikes
- Consider ECN or STP brokers that offer direct market access with fewer requotes
Broker Types and Requotes
The likelihood of experiencing requotes varies by broker type. Market maker brokers, who take the opposite side of client trades, may have more requotes as they manage their own risk exposure. ECN and STP brokers, which connect traders directly to liquidity providers, typically have fewer requotes but may experience more slippage instead.
For broker context, compare ASIC-licensed providers in our best CFD brokers Australia guide.