I am looking for some good MT4 broker. While reading some reviews, I often see the term "requotes". Can someone kindly explain what it means? How would it harm my trading performance? - Clearpicks
Requote is basically when the price of the underlying pair you want to trade is no longer the price when you submitted your trade ticket. Mostly occurs for market orders but can happen with limits and stops. Most systems allow you to specify a range (+/- couple of pips) which authorize execution of trade from original market order price. In context of forex brokers, more directly brokers that are dealing desk/market makers, you are requoted as a means to slow down your trading which gives them a chance to offset your trade. When you trade thru these type of brokers, they take the other side of all your trades; they take an offsetting position in the interbank to cover that trade. Even with computers, sometimes this can take a few seconds, and in this market, that could mean thousands. If your broker feels your trading style does not give him the opportunity to offset, he will put you on requote as a means to slow you down and discourage your type of trading.