<p>In the dynamic world of Forex trading, market conditions can change rapidly, leading to price fluctuations. A requote is a situation where a broker offers a new price for a trade when the original price quoted becomes unavailable or obsolete due to market volatility. This can occur when there's a delay in the execution of a trade, or when the market moves significantly between the time a trade is requested and when it's executed.</p>

<h2>How It Works</h2>
<p>When a trader places a trade, the broker's platform typically provides an initial quote based on the current market price. However, if the market moves significantly before the trade can be executed, the broker may offer a requote, which is a new price based on the current market conditions. This can happen due to several reasons:</p>
<ul>
  <li><strong>Liquidity providers</strong>: Brokers often get their prices from liquidity providers. If these providers are unable to fill the trade at the original price, the broker may offer a requote.</li>
  <li><strong>Market volatility</strong>: High volatility can cause rapid price changes. If the market moves significantly between the time a trade is requested and when it's executed, a requote may be offered.</li>
  <li><strong>Execution delay</strong>: If there's a delay in executing a trade, the original price may no longer be available, leading to a requote.</li>
</ul>
<p>Brokers usually have settings that allow traders to choose how they want to handle requotes. These settings can include:</p>
<ul>
  <li>Accepting the requote automatically</li>
  <li>Rejecting the requote automatically</li>
  <li>Being notified of the requote and deciding whether to accept or reject it</li>
</ul>

<h2>Why It Matters for Traders</h2>
<p>Requotes can significantly impact a trader's strategy and profitability. Here's why:</p>
<ul>
  <li><strong>Risk management</strong>: Accepting a requote can expose a trader to more risk than they initially anticipated. For instance, if a trader places a sell order at a certain price and the market moves down, the requote might be at a worse price, increasing the potential loss.</li>
  <li><strong>Profit potential</strong>: Conversely, if the market moves in the trader's favor, a requote could offer a better price, potentially increasing profits.</li>
  <li><strong>Trade execution</strong>: Requotes can disrupt a trader's strategy, especially if they're using automated trading systems or have specific price targets in mind.</li>
</ul>

<h2>Example</h2>
<p>Let's say a trader wants to buy EUR/USD at 1.18500. They place the order, but the market moves up to 1.18550 before the trade can be executed. The broker may offer a requote at 1.18550. The trader then has to decide whether to accept the requote, reject it, or wait for a better price.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Requotes occur when the original price quoted for a trade becomes unavailable due to market volatility or execution delays.</li>
  <li>Brokers usually offer requotes to reflect the current market price, but they can impact a trader's risk exposure and profit potential.</li>
  <li>Traders can manage requotes by adjusting their platform settings and being mindful of market conditions when placing trades.</li>
</ul>