A requote in the forex world means that the broker you are dealing with is not able or willing to give you a trade based upon the price you entered. Generally this happens in a fast-moving market, usually around the time of a big news announcement or some kind of shock to the system. In essence, you decide to buy or sell a currency pair at a particular price and press the button to do so. By the time your broker gets the order, the market will have moved too fast to execute at the price advertised. In reality it is a difference between the price you decided to enter a trade by clicking buy/sell and the price on the market when your order actually reaches the broker.
First of all, the requote may arise due to a risk management. If you trade large lots, the broker may want a verification that you really meant to trade that much. This takes time and when your order is actually executed by the broker, the price changes. Actually, it is expected that a reputable broker asks you first, before executing a large potentially risky trade.
Therefore, this happens to big players, not a beginner of Forex with mini lots during some economic press release.
What happens next ?
The requote statement pops up on your trading platform and you learn that the price has changed. The trading software lets you decide whether or not you still want to execute your order. Usually, the price is worse than the one you ordered.
Second, the requotes occur only in fast volatile markets. In this situation the Forex broker has the right to fill you on a market or stop market order and call it “slippage”. However, usually the broker is decent enough to let you know that the market has moved away and if you continue with this order, you may end up with an unfavorable price.
It is normal to ask your customer if they want a slightly different price, is not it? However, if you do suspect your broker in routine requites and you cannot get a decent explanation for it, it might be a good idea to change the broker.
Keep in mind, though, that most brokers don’t have to screw anyone over. They make plenty of money from spreads. Also remember, that if you are a beginner of Forex the requote is not your major problem. In fact it is not your problem at all. Besides, when trading with a reputable forex broker, it is rather easy to avoid a requote. The solution is the sell or buy limit orders. This way you let your broker know that you want to place an order at a specified price or better.
With limit orders, you basically state that you are not interested in a trade with a different price and in case the market goes the wrong way, you will stay away from it. However, frequent requotes, without a reason, ring a bell. Consider changing the broker. Many brokers advertise themselves as "no requote brokers". Check them out. Many of them actually tell the truth. However, they may compensate for this by using other tools, such as high spreads of extra commissions.
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