BRKV – What is requote? Does it have positive or negative effects to traders? As you may know, requote is one of the most popular things of forex trading platform and thus, this article will be explaining more details in some issues regarding to the requote such as the definition of requote, which types of executions that uses the requote, how to avoid requote if you do not want to experience it and who are the best no requote brokers.
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- 1 The definition of “requote” in the best no requote brokers
- 2 Is requote normal? Which are the best no requote brokers?
- 3 How to avoid the requote with the best no requote brokers
The definition of “requote” in the best no requote brokers
In forex market, experienced traders are quite familiar with requotes, which appear repeatedly on the trading screen for many times. So what is a requote? As it is defined, requote is a pop-up message which displays regularly on the trading screen. This requote notices that the market price has changed and then, your ordered price is different from the market price. In general, you have to enter a new price within 3 to 5 seconds and otherwise, your transaction is cancelled.
Requote often takes you for a while to manage and sometimes, it may even cause dramatic losses to traders due to the fluctuations of the market. It is easy to understand that any changes of the market price comparing to your opening price could be a disadvantage.
However, requote is considered to be regular in the forex market, which is, as mentioned above, entirely familiar to experienced traders. Beginners or low-experienced traders, meanwhile, still have difficulties with requotes as they are quite new to the market and easily get trouble by the fluctuation of the market price. It is suggested that beginners should practice more to get familiar with this requote and then, minimize their losses.
Is requote normal? Which are the best no requote brokers?
As mentioned before, requote is a normal thing of the forex market, which is included in most of the regular brokers, except for ECN brokers. Notably, there are 2 types of executions that regard to the requote: Instant Execution and Market Execution.
It is noticeable that requote only displays when you use the instant execution. This execution allows you to enter a specific price to buy or sell a certain currency. For example, EUR/USD price is 1.23456 and you enter a transaction to buy it instantly at 1.23456. This is called the instant execution. In some cases, it may take you several seconds to enter the price, stop loss, take profit… while the market price is changing into 1.26789 at the same time and after that, a pop-up message called requote will display on the trading screen. The system requires you to enter another price and then, you could decide whether to continue trading with the new price or to cancel the transaction immediately.
This type of execution allows your opening and closing orders to be matched at any market prices. For example, EUR/USD price is 1.23456 and you place an order to buy it. However, the exchange execute the order at a price of 1.23765 and thus, this difference is called slippage. The slippages in the forex market are totally normal and especially occur when there is big news or big event happening. Notably, when you use this kind of execution, you will not get any requote. It is easy to use this execution, too. Accordingly, there is a detailed instruction which help you understand and choose which pairs of currency are used by Market Execution or Instant Execution when you create an account.
Below is the list of the top best no requote forex brokers for your reference:
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Differences between the Instant Execution and the Market Execution
Apparently, there are some differences between the Instant Execution and the Market Execution, which are given in the following:
– The Instant Execution has the lower spreads than the Market execution.
– Instant Execution has the requote, whereas, Market Execution does not have any. In Instant Execution, there is a requote to notice you about the change of the market price so that you can adjust your price timely or just cancel the order. In contrast, by using Market Execution, you have to follow the price of the system, which depends on the slippages and therefore, there is not any requote for your notification.
– As mentioned above, Instant Execution allows you whether to place a new price following the market price or not, while you will not know about your new price in Market Execution if there is any change. It is easy to understand because the requote in Instant Execution notices you about the changes of price and gives you a choice to continue trading with the market price or to cancel the transaction. Meanwhile there is not any requote in Market Execution and then, you cannot know the changed price in the future.
Which types of execution should you choose?
Depending on the types of traders, each type of execution is suitable for each type of traders. If you are a technical trader who would like to trade at a stable time of the market, you should choose the Market Execution as there is not any requote to bother you. In contrast, if you are likely to trade whenever there is big news or at unstable time of the market, you should choose the Instant Execution to avoid the slippages and take advantage of low spreads.
How to avoid the requote with the best no requote brokers
BRKV – In common, there are several ways to avoid requote from displaying on your trading screen, which are listed as below:
– Use the Market Execution as there is not any requote in this type of execution.
– Use Deviation. So how does the deviation work? When using the MT4 trading platform, you could enter a deviation. For example, if you want to buy a EUR/USD mentioned above, you will enter a price at 1.234567 and then a deviation of 5. It means that when the market price changes a maximum of 5 pips, your order will still be executed at a price of + (-) 5 pips. That’s how deviation works.
– Use the ECN account as ECN brokers do not have any requote as mentioned at the beginning.
– Trade at the time when the market is more stable with fewer fluctuations. Requotes only display when there are any changes of the market price and thus, when the market price is stable or does not fluctuate, there are not any requotes at all.
In short, requote is a normal thing in the forex market, which is included in most of the forex brokers. However, it depends on which types of traders you are that you should choose your most suitable types of execution to make use of the requote or to avoid it.
Below is the list of top best no requote brokers that are highly recommended: