Definition
In forex trading, “Last Look” is a short time window that gives a liquidity provider—like a bank or broker—a final chance to accept or reject a trade before it’s confirmed.
When a trader sends an order at a quoted price, the liquidity provider uses this pause to check if market conditions have changed or if the trade still makes sense for them. It’s a way to protect against losses from sudden price moves or slow data feeds. Critics argue it gives dealers an unfair edge, while supporters say it helps manage risk in fast markets.
This practice is most common with no dealing desk brokers that connect traders directly to liquidity providers rather than acting as the counterparty to trades.
In short: Last Look lets a liquidity provider decide at the last moment whether to honor or reject a forex trade quote.
Example in Action
A Nigerian trader in Lagos submits a buy order for USD/NGN at 461.50 naira per dollar.
The broker's liquidity provider checks if the price moved during transmission.
Price movements during order transmission become the gatekeeper—determining which trades live and which mysteriously vanish into rejection.
If the rate shifts to 461.80—favoring the LP—the trade's accepted.
If it drops to 461.20—against the LP—the order's rejected.
The trader faces uncertainty each time, never knowing which trades will execute.
Brokers using ECN execution models eliminate this last look practice by routing orders directly to a network of liquidity providers without intermediary price checks.
Why It Matters
That uncertainty doesn't just frustrate traders—it reshapes how markets work across Africa.
When brokers can reject trades after prices move, Nigerian or Kenyan traders face higher execution risk. Spreads might look tighter, but completed trades aren't guaranteed.
This forces African participants to spend more on transaction analysis and reconsider which platforms they trust.
Different broker execution models—including ECN, STP, and market maker approaches—handle last look practices in varying ways, affecting how reliably orders are filled.
Regulators across the continent are now watching these practices more closely.
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