Requotes: When the Price You Clicked Disappears

[Fairman]

Requotes: When the Price You Clicked Disappears

A requote happens when you attempt to trade at a price and the broker responds with a new price, asking you to accept or reject it. It is a feature of some execution models, particularly dealing desk brokers.

The cause is simple. Between your click and the arrival of the order, the price changed. The broker, instead of filling you at the new price or the old one, asks for confirmation.

Occasional requotes in fast markets are normal. A pattern is worth investigating, particularly if requotes only seem to happen when the price moves in your favor, while orders move through at worse prices when it moves against you. That asymmetry suggests the broker is using the delay for its own benefit.

Brokers with market execution do not requote. They fill at the best available price, which may differ from the quoted one, and the difference is slippage. Many modern brokers use this approach.

If requotes are frequent, there are several options. Check your connection speed. Use limit orders instead of market orders. Ask the broker about its execution model. And compare against another broker.

Keep records of requotes with screenshots and timestamps, in case of dispute.

Notice also the setting for maximum deviation, sometimes called slippage tolerance, in your platform's order window, since it controls how much price movement you will accept.

Practical step: find the deviation setting on your platform and note its current value.

[Fairman]

The asymmetry test is the important one. Keep a simple note every time you get a requote: was price moving for you or against you? After 20 or so you'll know if it's random or not.

[Fairman]

Quick tip on the deviation setting: zero means you'll get requoted or rejected a lot in fast markets. A couple of pips is a reasonable middle ground for most majors.