If you are currently trading in the forex market, you might have already encountered the term “requote”. That term actually means that the broker cannot fulfill your trade at your desired price, usually due to a rapid movement in the market.
Requotes usually happens in a fast-moving market, such as when there’s a release of a big news or a shock to the system. Say for example, you’ve decided to buy EUR/USD at the price of 1.1480. Because of the rapid movement of the market, the price of EUR/USD might have changed by the time your broker is able to fill your order, making your broker unable to fulfill your order at the specified price.
Normally, a good forex broker will provide a notice in your trading platform to inform you that the price has moved, and gives you the chance to decide whether to accept the new price of not. Usually, the new price is worse than the price you have specified, that is why a good forex broker notifies you and asks you first, before fulfilling the trade.
How to Avoid Requotes
Avoiding requotes in forex is pretty simple with a reliable forex broker. By placing a limit order, you’re informing your broker that you only agree to get your order filled with the specified price or better. By doing this, you are basically telling your broker ahead of time that you don’t want to pay more than your specified price, and you’re willing to put your trade in the queue if the current market price doesn’t allow your order to be fulfilled.
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