Re-quote is a function from the broker to avoid unnecessary things to happen such as:
1. client complain
2. legal dispute
3. business risk (financial loss)
Normally, re-quote happen when the price is moving actively. For example:
1. you see the price on your chart is 1.30055 and you want to enter on that price
2. and then some milliseconds after you press the buy button the price already move to 1.30065. at this point you will get a re-quote because the broker want to confirm whether you want to enter at the new price ( 1.30065) or not. The broker do not dare to fill your order without your permission because imagine if you trade 5 standard lots (50 IFX lot) you will miss 1 pips if the broker fill you at the new price and then you will complain to the broker saying "I clicked the buy button on 1.30055 but why do I get 1.30065?" Some people might even go with filing a legal claim and go to court if the missed opportunity is big. Another factor that will affect this is the distance between you and the trading server. If you live in Australia you should not choose the trading server in Europe but you should choose a trading server that is closer to you which is in Hong Kong or Singapore (just examples, go check with InstaForex of the available location of trading servers that they have). This is because the distance will affect your order because the order need to travel from your computer/laptop/mobile device to the trading server. The longer the distance the longer it will take for your order to arrive at the trading server. Of course, the length of time is very fast in 1 seconds or less but the difference in milliseconds is very important in this business because there are millions of traders in this world and maybe a lot of them want the same price. (There is a whole of topics that discuss about this latter subject but I'm not gonna discuss it all in this thread to keep it simple). Unstable internet connection might also be the cause of re-quote.
1. client complain
2. legal dispute
3. business risk (financial loss)
Normally, re-quote happen when the price is moving actively. For example:
1. you see the price on your chart is 1.30055 and you want to enter on that price
2. and then some milliseconds after you press the buy button the price already move to 1.30065. at this point you will get a re-quote because the broker want to confirm whether you want to enter at the new price ( 1.30065) or not. The broker do not dare to fill your order without your permission because imagine if you trade 5 standard lots (50 IFX lot) you will miss 1 pips if the broker fill you at the new price and then you will complain to the broker saying "I clicked the buy button on 1.30055 but why do I get 1.30065?" Some people might even go with filing a legal claim and go to court if the missed opportunity is big. Another factor that will affect this is the distance between you and the trading server. If you live in Australia you should not choose the trading server in Europe but you should choose a trading server that is closer to you which is in Hong Kong or Singapore (just examples, go check with InstaForex of the available location of trading servers that they have). This is because the distance will affect your order because the order need to travel from your computer/laptop/mobile device to the trading server. The longer the distance the longer it will take for your order to arrive at the trading server. Of course, the length of time is very fast in 1 seconds or less but the difference in milliseconds is very important in this business because there are millions of traders in this world and maybe a lot of them want the same price. (There is a whole of topics that discuss about this latter subject but I'm not gonna discuss it all in this thread to keep it simple). Unstable internet connection might also be the cause of re-quote.
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