Re-quotes in foreign exchange is among the issues that will rank very well with foreign exchange traders. Most traders tend to register having a foreign exchange broker without having done due research. This ultimately results in "ugly" surprises for example re-quotes. To tell the truth, there's nothing ugly about this, because in almost 90% from the cases, the foreign exchange broker might have pointed out a couple of reasons for re-quotes.
If you're trader who's battling with constant requotes, then possibly this information will shed some light. But first of all, know that you're not along.
A broadly popular misunderstanding with foreign exchange traders is they believe once they take advantage of "a single click buying and selling" particularly when buying and selling foreign exchange on news occasions that it requires a little of your time for the to achieve the broker's server (referred to as latency) by that point the cost might have moved substantially thus producing a requote. This popular misunderstanding has thus boosted another market, what we should call as foreign exchange VPS services which promise you latency and well nearly other things underneath the sky. Traders finish up trading much more money to trade through the VPS in order to reduce around the requotes, but do you want to take a position a lot? The reply is virtually no.
In a perfect scenario, requotes in foreign exchange shouldn't appear especially when you're one click buying and selling. And therefore as soon as clicking, the trade ought to be performed at this prevailing market cost. The way in which foreign exchange brokers work is they use liquidity companies to be able to present the very best bid and request prices. So when you're placing the transaction, you're in reality proven the marketplace prices because they were. Where may be the question or re-quotes?
How you can check what's leading to you requotes
A little trick to determine the problem of foreign exchange requotes is to visit the folder on your pc where you will find the MT4 buying and selling platform installed and then click the logs. The logs folder includes accurate documentation held in b .txt format with a log of your trades.
To check on the reason why you appeared to be requoted, just visit the archive section and identify a specific date whenever you were buying and selling and also you reached see lots of re-quotes. In addition, you are able to disregard the amount of time in the logs as that's produced from your local computer.
Generally requotes happen because of either of these two reasons
1. You're buying and selling having a market marker foreign exchange broker who makes their very own prices in line with the market conditions. When the transaction arrived at the broker (or even the dealing desk) the marketplace conditions transformed which needed the broker to transmit you back a brand new prices.
2. You're buying and selling having a foreign exchange ecn broker and when the transaction was undergone the prices transformed leading to no bid/request cost in the cost you desired to trade.
Most traders think that slippage or requotes in foreign exchange has a tendency to happen just with market marker foreign exchange brokers, but that's only partially true. Requotes can occur despite foreign exchange ecn brokers regardless of their liquidity pools. While requotes are common, if you see that you're being requoted a little too frequently, particularly with a foreign exchange ecn broker, then it's something to worry about.