What is Requote?

Question

What is Requote?

Accepted Answer

A **Requote** is a notification from a foreign exchange (FX) broker, typically operating under an Instant Execution model, that the price at which a trader attempted to execute an order is no longer available due to rapid market movement, requiring the trader to accept a new, updated price. This mechanism is a direct result of market volatility and latency, and it serves to protect the broker from negative price slippage.

Requote

What is Requote?

What are the primary causes of a Requote and how does market volatility influence their frequency?

How do different broker execution models, such as Instant vs. Market Execution, affect the likelihood of experiencing a Requote?

What practical steps can a retail FX trader take to minimize the occurrence of Requotes and ensure better trade execution?

How does the MiFID II Best Execution policy address the issue of Requotes and what are a broker's regulatory obligations?

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