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Requote

A broker's response offering a new price instead of filling your order at the one you clicked, typically during fast markets.

Requotes belong to the instant-execution model, where the client asks to trade at a specific displayed price and the broker must either accept or counter. If price has moved, you get a dialogue box with a new number and a few seconds to decide.

They are frustrating around news, when the price can move again before you respond. The alternative, market-execution, removes requotes but accepts slippage instead: you always get filled, just not necessarily where you expected.

Example: you click to buy EUR/USD at 1.0840 as a data release hits. Two requotes arrive, at 1.0845 then 1.0851. By the time you accept, entry is 11 pips worse, $110 on a standard-lot.

Related: instant-execution, market-execution, slippage-tolerance, last-look

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Slippage on a market orderA buy order clears four price levels, so the average price paid is worse than the price first quoted.Buy 1,000 shares at marketpricesell orders resting (bar length = size)20.04300 shares20.03200 shares20.01200 shares20.00300 sharesnothing resting at 20.02order sweeps up the bookaverage fill 20.02SLIPPAGE0.02 a share$20.00 in totalintended 20.00Each level fills at its own price; the average is what you really paid.
Slippage on a market order. You click at 20.00, but only 300 shares are resting there, so the rest of the order fills at 20.01, 20.03 and 20.04. The average price paid is 20.02, and that two-cent gap is slippage.

Educational only, not advice. Spotted an error? Post in Site Feedback.