What Is Requotes In Forex Trading And How To Avoid IT ?
I explain for you what is requote/ offqoute is and how to avoid it in your forex trading with forex brokers.
What it is, is that since you are entering your exit manually the price moves between the time you hit the close button and the close, which is now a market order, reaches the server.
So, price has moved. Forex brokers like Hy Markets for example is not trying to screw your trade.
I’ve experienced requotes when trading all manual. Here is how I get around it.
1. Set a take profit level, before the trade is entered. Don’t modify it afterwards, price may go past what you want. Did 15 trades between today and yesterday with a TP set as the trade went in. Every trade that went my way closed at my TP. No, strange messages.
2. Set a stop loss, before the trade is entered. Again don’t modify it afterwards, price may fly by what you were wishing to risk. I don’t usually use automated stop losses as more often than not I’ve seen price get close to or hit my stop loss and go back where I thought probable. No, this isn’t Hy Markets trying to screw trades, this is normal market volatility. Sure, there are traders stop hunting, that is part of the game.
3. In MT4 with Hy Markets their is a little check box, “enable maximum deviation from quoted price”. Don’t use it myself, but if you are trying to get out manually and want out as soon as you click the button, this is for you. If you are trying to scalp at 5 pips at a time it probably won’t work out. But, it will only deviate from the price by what you put in there. Another Hy Markets trader who used it told me that more often than not it hit his deviation, but even if you set it at only 3 pip that would give you little leeway +3 or -3 pips from the price you click close on, so there would be less likelihood of a requote depending on how fast price is moving.
4. If you really don’t like any of the automated options, then you will just have to click close and hope it takes it. I myself trade this way often. When price is moving I get requotes, I click yes I want to close and it usually closes just a few pips from the price I wanted. This has happened about 50/50 in my favor where it was larger than I wanted. You just have to be quick.
5. Your other options is simply to wait for price to stall a bit and get out. I’ve never had a reqoute when this happened. If you are in a positive trade and have already hit your TP and price stalls you may want to get out anyway. It could be sign it’s going to retrace.
I’ve been trading live at Hy Markets for a little over two months. I haven’t seen any evidence of shenanigans. What I have seen is how certain things can be misconstrued as , “trading against you,” or , “purposely not allowing you out of a positive trade so it will reverse.”
When I traded live my first day I was chasing price all over the place. I of course got requotes all over the place. “dammit I want to close I’m positive, WTF!!!!!!!!!!!!!!” I of course thought that it was some sort of scam on part of Hy Markets. When it was explained to me price had moved in the space of time I had hit the close button and my order to close hit the server, then it made perfect sense.
When you hit close it becomes a market order. Which says close at this price and this price only. If that price isn’t there, guess what you don’t get the price and you get the message requote.
Honestly, at least for the sake of paranoid noobs the message should be exactly as it was explained to me……. “Price has moved in the space of time it took your order to close manually to reach our server. Close became a market order which says close at this price only. This price is no longer in market. You can either set a SL/TP as you initially enter the order, or enable maximum deviation and hope for the best.”
That would be a lot better then simple seeing, “reqoute,” and, “offqoute,” which are different flavors of the same thing, price moving past your market order before it reaches the server.
This Article Wrote For www.TopForexBrokers.com By Hymarkets