Delays and re-quotes are directly linked — one happens because of the other. These delays can work against you simply because they do not allow you to enter or exit the market when you want.
Your order execution will be instant and you will be able to enter or exit the market whenever you want. However, it is the market makers that work slightly differently.
Please know that not all market makers do the following but there is a select few that do. Sometimes, it may not be executed at all but it is more than likely that you will have to wait a few seconds for your order to go through. This delay could be as long as 10 seconds or even more.
As you are probably thinking — that is not fair, and you are right. You should be able to enter or exit the market at the quoted price, whenever you want. The reason for the delay is that your Forex broker is not able to provide the price they are quoting at the time so they give you the next best thing — a re-quote for the same transaction at a different price. The price you originally wanted and were shown by the broker is no longer available.
You may find that the re-quoted price has a much wider spread so that they make much more money from you. The wider the spread, the more money they make.
As this is a 1 minute chart where prices move quickly we are very confident that this is going to be a quick and easy trade with good profit potential.
It is also crucial that our order is processed instantly, with no delays. However, if our Forex broker does not allow us to enter at This is no good because we have been entered into the market far too late. The broker has made more money from us by doing this but we are now stuck with a huge stop loss and a small profit target which will break-even if we are lucky.
The worst case scenario occurs if we were wrong in taking that trade. If prices reverse back down-wards our loss will be far greater than the loss we would have had if we were able to take the trade at the original price we wanted. If you do click it then this is where the world stands still while you wait for the broker to make up their mind. As we mentioned earlier, if you have experienced any of the above then is highly likely that you are using a market maker broker who wants to make more money from you by providing re-quoted prices.
You should always be able to enter the market straight away at the originally quoted price and it should always be up to you when to enter or exit the market NOT the broker. So, make sure that you are careful, investigate as much as possible and if any of the above happen to you, contact them straight away and find out why this is happening.
To make it easier for you we have created a list of approved Forex brokers for you to choose from. Each one has its own information row and a link to either open a live or a demo trading account. Scroll down the list to find the right one for you.
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The British Pound has had a strong run this year as a Brexit agreement has appeared to edge closer. However, there are too many hurdles still to jump and a heavy fall is overdue. Forex Training Part 4 Menu Money management. Forex broker delays and re-quotes explained. Forex articles Menu Forex broker articles Forex training articles.More...