Retail Internalizer Requote Tolerance Band
The Formal Definition
An asymmetric execution parameter programmed into retail dealing-desk software (such as MetaTrader Virtual Dealer plugins) that automatically accepts market orders if the price moves favorably for the broker, but rejects or requotes the order if the market moves favorably for the client beyond a pre-set tolerance band.
Execution Condition: If ΔP_{Favorable to Client} > Tolerance Band ➔ Requote/Reject | If ΔP_{Favorable to Broker} > 0 ➔ Execute at Worse Price
Cole Barrett's Reality Check
The Unvarnished Bottom Line"Dealing-desk brokers love the word 'requote.' You click buy at 1.0850. In the 200 milliseconds it takes to process, the market moves to 1.0852. Instead of filling you, a pop-up appears: 'Price has changed, do you accept 1.0853?' But if the market drops to 1.0848, they never requote you—they fill you at your original price and pocket the two pips for themselves."
Interactive Simulator: Test the Math
Real-World Example: Scenario Breakdown
Examining the real numbers for: Submitting a market order to buy 5 lots of EUR/USD during an active macroeconomic news release
| Execution Metric | Direct ECN/STP No-Dealing-Desk Client | B-Book Dealing-Desk Retail Client |
|---|---|---|
| Fee / Rate | $2 per lot institutional commission | $0 advertised commission |
| Spread / Buffer | Order routed directly to an interbank Electronic Communication Network (ECN) with zero dealing-desk intervention | Order intercepted by an internal dealing-desk plugin operating with a 1.0-pip asymmetric tolerance band |
| Execution / Status | Filled at the prevailing interbank market rate within 15 milliseconds with clean symmetrical execution | EUR/USD surged 2 pips; dealing desk rejected the order and issued a 'Requote' at a 3-pip higher price |
| Total Cost / Result | Transparent market execution via non-dealing-desk architecture | Suffered execution degradation from asymmetric dealing-desk requote rules |
How Brokers Weaponize This Term
If your forex or CFD broker ever prompts you with a 'Requote' pop-up or experiences asymmetric execution delays during market breakouts, they are running a B-book dealing desk. Switch immediately to a true ECN/STP broker that provides Direct Market Access (DMA) with zero requotes.
Broker Evaluation Matrix
Cole Approves
Pepperstone: Operates strict ECN/STP execution models on its Razor account, streaming raw interbank spreads with zero dealing-desk requotes.
Read Audit →Cole Flags / Avoids
Offshore CFD Dealing Desks: Utilizes virtual dealer plugins to systematically requote profitable customer orders while passing through all negative market slippage.
View Trap Details →Frequently Asked Questions
What is a 'requote' in trading?
A requote occurs when a dealing-desk broker refuses to execute your order at the requested price and instead offers you an updated (usually worse) price that you must accept or decline.
Can a true ECN broker requote an order?
No. True ECN and DMA brokers do not requote; orders are matched against real market liquidity and either fill at prevailing market prices or cancel based on your limit instructions.