Last Look simply refers to the ability that liquidity providers have to reject an order even when the order matches the liquidity provider quoted price. Essentially, the liquidity gets one last chance or look to decide whether they want to take the other side of an order. The fact that liquidity providers can give traders orders a last look before accepting the order is something that frustrates many traders, as it can often result in a certain amount of slippage.

As the order will then be executed at the next best price. If your order is rejected by a number of different liquidity providers you may experience a significant amount of slippage.

This ability to give orders a last look before accepting is vitally important for liquidity providers. Spot Forex is relatively unique in the fact there is no centralised exchange where orders are processed but are rather placed through an array of brokerages, prime brokerages, liquidity aggregators and interbank platforms. This means when a Tier 1 liquidity provider quotes a price this is distributed to all aforementioned trading venues.

If the liquidity provider did not have the opportunity to give orders a last look, they could end up offering much more liquidity at particular price than they originally intended too.

Last look gives liquidity providers the ability to have their quotes distributed across a number of different trading venues, allowing a wider range of institutions access to Tier 1 liquidity. Your email address will not be published.

Leave this field empty. What is last look in Forex.

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Why Does Last Look Exist? The fact liquidity providers are able to reject orders means that they are able to quote tighter spreads, as they know they can reject the order should the need too. Not all quotes that appear on a traders screens will be executable, with liquidity providers rejecting traders orders etc.

As previously mentioned not all orders will be executed at quoted prices, leading to slippage occasions. As orders may be rejected by liquidity providers, it may take longer for orders to be executed.

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