What Is Last Look in Forex Trading?
Last look is a practice in which a liquidity provider, after receiving a trade request from a market participant, retains the right to accept or reject that order before execution is confirmed. The review window is typically very brief — often just milliseconds — but it gives the provider a final check before committing to fill the order at the quoted price.
Why Does Last Look Exist?
Liquidity providers operate in fast-moving electronic markets where prices can shift between the moment a quote is issued and the moment an order arrives. Last look originated as a risk-management mechanism — it allowed banks and liquidity providers streaming indicative prices to avoid being locked into trades at prices that had already moved unfavourably.
How Last Look Affects Traders
For retail traders, last look is largely invisible — it operates at the infrastructure level between brokers and their liquidity providers. However, its effects can surface as:
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Rejected orders during fast markets or around high-impact news events
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Increased requotes on certain ECN or STP platforms
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Wider effective spreads when last look rejection rates are high
Last Look vs. No Last Look Execution
| Feature |
Last Look |
No Last Look |
| Rejection possible? |
Yes |
No — fills are firm |
| Common in |
Bank/LP streams |
Exchange-traded venues |
| Speed of execution |
Fractional delay |
Immediate |
| Preferred by |
Liquidity providers |
Active traders |
Last Look: What to Keep in Mind
As a precaution, traders should be aware that last look rejection is most likely during periods of extreme volatility — exactly when fast execution matters most. When evaluating a broker’s execution quality, asking whether their liquidity providers operate with or without last look is a reasonable question to inform your choice of platform.
Trade with Transparent Execution
Understanding the mechanics behind order execution helps you become a more informed trader. Last look is one of several factors that determine how reliably your trades are filled. Create your live VT Markets account or log in now to experience competitive execution in a transparent trading environment.
Risk Warning:Trading CFDs involves significant risk and may not be suitable for all investors. Losses can exceed your initial deposit. Please ensure you fully understand the risks involved before trading.
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