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What is re quote in forex?

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Forex trading is a complex market that requires a lot of knowledge and experience to be successful. One of the concepts that traders need to understand is re-quotes. Re-quote in forex refers to a situation where a broker is unable to fill an order at the price requested by the trader and offers a new price instead.

In forex trading, orders are executed based on the current market price. When a trader places an order, the broker quotes the price at which the order will be executed. If the market price changes before the order is executed, the broker may not be able to fill the order at the quoted price.

This is where re-quotes come into play. When the broker is unable to fill the order at the quoted price, they will offer a new price to the trader. This new price may be higher or lower than the original price, depending on the market conditions.

Re-quotes are a common occurrence in forex trading, especially during periods of high volatility. They can be frustrating for traders as they can cause delays and may result in trades being executed at less favorable prices.

However, re-quotes are not necessarily a bad thing. They can be a sign that the broker is providing accurate and up-to-date quotes based on the current market conditions. In fact, some traders prefer brokers that offer re-quotes as it can help ensure that trades are executed at the best possible price.

There are several factors that can cause re-quotes in forex trading. One of the most common is market volatility. When the market is volatile, prices can change rapidly, making it difficult for brokers to fill orders at the quoted price.

Another factor that can cause re-quotes is the size of the order. Large orders may be more difficult to fill at the quoted price, especially if there is not enough liquidity in the market.

Finally, re-quotes can also occur due to technical issues. For example, if the broker’s trading platform is experiencing connectivity issues, they may not be able to fill orders at the quoted price.

To minimize the impact of re-quotes on their trading, traders should choose a reputable broker with a reliable trading platform. They should also monitor market conditions and adjust their orders accordingly to avoid being caught off guard by sudden price movements.

In conclusion, re-quotes are a common occurrence in forex trading that can cause delays and frustration for traders. However, they can also be a sign that the broker is providing accurate and up-to-date quotes based on the current market conditions. To minimize the impact of re-quotes on their trading, traders should choose a reputable broker with a reliable trading platform and monitor market conditions closely. With the right approach, re-quotes can be managed effectively and should not prevent traders from achieving success in the forex market.

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