Requote
Family II · Orders
Not to be confused with slippage, market order, spread.
Requote is a broker's counter-offer to a trading order: instead of filling the order at the price the trader requested, the broker proposes a different price. Requotes occur most often in fast-moving markets or with market orders, where the quoted price is no longer available by the time the order reaches the venue. The trader must then accept the new price, reject it, or let the requote expire.
How a requote arises
A requote is a rejection of the original order terms combined with a new offer. It is common when a trader submits a market order or an aggressive limit order during volatile conditions: the price shown on the platform may be milliseconds old, and by the time the order is processed the best available price has changed. Rather than fill at a stale price, the broker responds with a requote.
Requotes are more frequent on dealing-desk (market-maker) execution models, where the broker takes the other side of the trade, than on ECN or STP models that pass orders directly to liquidity providers. The exact frequency and handling of requotes vary by broker, instrument, and market conditions.
Worked example
A trader places a market buy order for 100,000 EUR/USD. The platform shows an ask of 1.1050, but the price ticks up before the order is filled. The broker responds with a requote at 1.1053.
If the trader accepts, the position opens at 1.1053. If the trader rejects, the order is cancelled and no trade occurs.
Requotes and order types
Requotes are less common with limit orders because a limit order specifies the maximum or minimum price the trader is willing to accept; if the market cannot meet that price, the order simply rests unfilled. Market orders, by contrast, have no price protection and are therefore more susceptible to requotes. Some brokers offer a setting to disable requotes, but this may result in the order being filled at the next available price without further confirmation.
Often confused with
- slippage
- Slippage is the difference between the price a trader expects on an order and the price at which the order is actually filled, typically caused by fast-moving markets or insufficient liquidity at the quoted level.
- market order
- A market order is an instruction to buy or sell a financial instrument immediately at the best available current price, without specifying a price limit, so execution is prioritised over price certainty.
- spread
- The spread is the difference between the bid price and the ask price of a financial instrument, representing the primary transaction cost in most markets.