Requoting means if for example, a trader opens a trade at 1.20 usd/jpy, then the broker returns the request with a different quote like 1.21 usd/jpy. The price feed data renews 5 times every second, so there is a lot of requoting especially in volatile markets. Brokers can only do requoting when a trader uses instant execution order, instead of market execution. What does this mean?
This means that the trader is at a huge disadventage:
Instant execution:
- The execution of orders takes 3-5 sec
- Requotes
- The execution depends on the market
- The access to the market through the dealer
- The price is provided by the broker
- No opportunity to open order at a better price
- The trading strategies (scalping, hedging, news trading, using EA) are limited
Market execution:
- The execution of orders takes fractions of a second
- No requotes
- The execution is guaranteed
- Direct access to the market
- The price is provided directly from the market
- There is an opportunity to open order at a better price
- No limits on trading strategies (scalping, hedging, news trading, using EA)
About 50 brokers that I talked with are doing requoting. But still they are telling me that they do NOT go against the trader even though they do requoting.
Does REQUOTING mean that the broker does not go against the trader? Please explain this to me.