no last look execution on certain types of order. Last Look simply refers to the ability that liquidity providers have to reject an order even when the order matches the liquidity provider"d price. You may have heard the term last look being mentioned by traders and been confused as to what is meant by this term. 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. 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. This means when a Tier 1 liquidity provider"s a price this is distributed to all aforementioned trading venues. For instance, well known FCA regulated lmax Exchange offers traders no last look execution on Streaming limit orders which are provided by those who are members of the MTF. 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. The fact liquidity providers are able to reject orders means that they are able to" tighter spreads, as they know they can reject the order should the need too. Pros and Cons of Last Look. But even when trading on an ECN, some of your orders will be subject to last look with. ECN/STP brokerages relying on liquidity providers at least some of the time. Last look gives liquidity providers the ability to have their"s distributed across a number of different trading venues, allowing a wider range of institutions access to Tier 1 liquidity. Essentially, the liquidity gets one last chance or look to decide whether they want to take the other side of an order.
No Last Look Brokerages, few, if any retail Forex brokerages or commercial currency transfer firm can boast a no last look price feed, as it is not in liquidity providers interests to accept orders without giving them a last look. As previously mentioned not all orders will be executed at"d prices, leading to slippage occasions. Despite, this its not always possible to receive no last look execution and it is something which will occur with any brokerage which makes use of liquidity outside their ECN. The only time when you can genuinely experience no last look execution is when trading with other traders on Electronic Communication Network (ECN).