Why it matters
Requotes are time risk. They widen your distribution of outcomes and can force you into worse entries or exits than your plan allowed.
Operational use: this is how the market taxes urgency. When it appears, slow down or size down.
Common trap
Trying to trade speed-dependent setups on execution that can requote. Your edge dies while you are negotiating with a server.
Example
You place a market order around data. The broker returns a requote 500 ms later with a worse price. Your intended risk-reward is gone before you even enter.
Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.
Notes
Quick rule
- If you see this repeatedly, you are in a different regime than your model assumes.
- Regime change usually means position size change.
- When in doubt: trade smaller, or don’t trade.