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Market Basics

What Is a Requote

A requote is your broker saying the price has changed since you clicked, and asking whether you still want the trade at the new one. This paper shows you what the box is, why one kind of broker asks and another kind fills without asking, what the deviation setting does, and where it is on your ticket.

Difficulty
Beginner
Reading time
6 min
Pages
8
Reviewed by
Saman Rahbar

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The box

A requote is a box. You clicked buy at 1.15881 on the euro against the dollar; in the moment the order took to reach the broker, the price moved to 1.15884. Instead of filling you at a price you did not click, the broker sends the new one back and waits. Accept, and you are in at 1.15884. Reject, and there is no trade. The box is not an error. It is the broker keeping a promise — the promise that you get exactly the price you clicked, or a question.

Whether you ever see the box depends on which promise your broker made. An instant-execution broker promised the exact price, so when the price moves it has to ask: that is a requote. A market-execution broker promised only to fill you, so it fills at the new price without asking: that is slippage, the subject of the paper before this one. The same three-point move produces a box on one account and a slightly different fill on the other. You will meet one or the other, never both.

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