What is “last look”?

by Jul 9, 2020Trading Guides

What is “last look”?

Last look is a colloquial term for liquidity providers or brokers stating a quoted price rather than a firm price based on supply and demand. Since the price stated is a quoted price, the liquidity provider or broker has the option execute the trade, offer an alternative price, or decline the trade.

Last look practices are often synonymous with Market Maker brokers which take the other side of your trade. Since their prices are quotes, there is a chance that they will manipulate their prices to their advantage or induce slippage when news events occur. Market makers tend to have higher spreads in comparison to ECN brokers.

ECN brokers receive bids / asks from their clients and directly match the best bid and ask prices across multiple market participants. The best prices are the prices stated on ECN brokers platform. Since ECN brokers only match trades, they do not have the opportunity to front run or have the “last look” to clients’ trades. We at BlackBull markets are proudly an ECN only broker, meaning we do not interfere with your trades and provide you with the best bid/ask spreads.

 

 

 

 

Related Posts

Stocks coming into 2021 – Boom or Bust?

Stocks coming into 2021 – Boom or Bust?

Stocks coming into 2021 – Boom or Bust?

Here are two fun facts from equities in 2020.

· The NASDAQ returned 46% from the start of 2020. If you purchased at the peak of the recessionary period in mid-March, you would’ve made a return on investment of 85%.
· Meanwhile, the S&P500 only returned 17% from the start of 2020.
· The average price/earnings ratio for stocks in the NASDAQ was pushing 23
· The best performing stock that is in the S&P 500 and NASDAQ was Tesla, providing a 743% Return.

With that in mind, what are we expecting for stocks coming into 2021?

read more

Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921).
We are also registered with the Financial Services Provider Register (number: FSP403326).

Black Bull Group UK Limited is registered in United Kingdom, Company Number - 9556804. Payment clearing services provided by: BlackBull Group UK Limited (Company Number - 9556804) Address - 483 Green Lanes, London, Greater London, United Kingdom, N13 485

Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

All payments related to the Paysafe Group are facilitated by Black Bull Group Limited.

Copyright © 2021 Black Bull Group Limited. All Rights Reserved.

Share This