Tag Archives: “last look”

How last look can screw your FOREX trading?

 

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.

http://thefxview.com/2014/07/16/what-is-last-look-in-forex/

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.

https://www.lmax.com/exchange

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.

http://www.forexfactory.com/showthread.php?p=8448242

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Hi what does “last look” rule/functionality mean in trading? I came across this

Hi what does “last look” rule/functionality mean in trading? I came across this
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Last look is where the FX dealer who is providing you with the price gets a change to review your order before he/she accepts it. They could re-quote you another price.
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There may be other meanings, but…In RFQ-based trading, it’s where a trader (usually retail) gets a chance to equal or better the market when an indicative price is hit.
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“Last look” refers to the feature on many platforms in which the party that is making markets gets a chance to reject a trade if it doesn’t want it. Generally, the market maker has a couple hundred milliseconds to reject, or the fill is good. It’s a lamentable practice that has its origins in the early days of e-Trading, when bank technology was so much slower than on the buy-side (institutional prop trading), that this had to be added so that banks wouldn’t get creamed so badly. Even though banks have mostly improved their infrastructure, they became addicted to having last look at trades, so the practice persists. It’s utterly bogus, but there it is. A number of major platforms still support it. Now, it is becoming available to buy-side market makers as well.

thanks! thats very clear explanation!

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!