How last look can screw your FOREX trading?
Boy, the valuable things you learn in trading. Check this out:
You may have heard the term ‘last look’ being mentioned by traders and been confused as to what is meant by this term. 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.
One broker that does not do this is LMAX!
The unique LMAX Exchange business model addresses the fundamental changes happening within the FX market, and solves two key industry problems:
- Lack of transparency of the true cost of OTC traded FX
- Lack of precise, consistent & reliable FX trade execution
LMAX Exchange delivers conflict free, neutral execution and transparent cost of trade to both, the buy-side and sell-side. LMAX Exchange is not a market-maker, and unlike some ECNs, the open order book is driven by streaming, non ‘last look’ limit orders supplied by top tier banks and institutional liquidity providers.
is Interactive Brokers go not no last look? This is all I could find. Anyone out there know?
With that said, Global Prime Au, IC Markets, FxOpen Au or UK ECN accts, RubixFx are good for retail trading. Interactive Brokers if you don’t need mt4.
Join my Meetup groups if you want to learn CRITICAL ITEMS like this. Thanks to all my local members who brought this up!!
http://www.meetup.com/R-Matlab-Users/FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!