In the foreign exchange market, it is crucial that you just keep avoiding requotes since it might destroy your trades. Here is 2 measures for you to prevent requotes in forex very easily.

How to avoid requotes in forex is an important question that plays a very vital role in every forex trader’s career. Before we go into a detailed discussion, let me tell you that what is a forex requote? Your trades are not executed immediately when you order them, rather they are sent to your broker who then later on executes them. There is always a difference between the order time and execution time (due to many reasons), even if you place a market order. As the forex market is very fast moving market, so there are chances that the prices may move between your order and execution time, which is then compensated by you or your broker in the form of requotes. Hence it is very important that you should keep avoiding these forex requotes to remain on the safe side. Now you will find two best ways to avoid forex requotes.

Place stop loss orders to avoid forex requotes

Stop loss order, as the name depicts, is an order to avoid any further loss or to put a stop to the loss. A stop loss order will allow your broker to execute the order when the price of the currency pair reaches a pre-determined price level. When the already determined price will be reached, your order will be executed immediately by your broker.

There are many types of stop loss orders and you can place any of the stop loss order according to you needs. You can place any of the stop orders considering your risk management strategy. Stop loss orders will help you in avoiding huge losses. Do not use automated stop loss orders, as they are not very efficient.

Take-profit order will also be very helpful for you

When we talk about how to avoid requotes in forex, take-profit order or T/P order is very helpful. In a take-profit order, your order will be executed when the price of the currency reaches a certain price above your mentioned price. This particular order is specifically used to grab extra layers of profit.

It is important that you should know when to use T/P order. It is to be used when you are sure that the price of the currency (you are currently holding) will rise, but you are not sure that what would be the price reaction after reaching a certain point.

For example, you bought a currency at $80 and you are sure that the price of the currency will move up to $83. In such a scenario, you should use a take-profit order. In the above example, you need to place the order at $83. Hence, when the price of the currency will reach $83, trade will be executed.

As a forex trader, you always need to keep looking at the market and currency prices all the times. In order to increase your profit, you simply need to keep avoiding forex requotes. I am sure after reading above mentioned details, you can answer any beginner trader quite easily that how to avoid requotes in forex. Remember trading is all about learning and applying, so keep doing both.

Author's Bio: 

Getting lots of requotes will tackle your trading and selecting the right broker is important to prevent that matter. I suggest you check out the information on a broker with not much requotes at Accent Forex Broker. Also consider additional great recommendations on top forex brokers.