How Do 'Firm Quotes' Eliminate the Possibility of a 'Last Look' Rejection? ▴ Learn

How Do ‘Firm Quotes’ Eliminate the Possibility of a ‘Last Look’ Rejection?

Firm quotes are legally binding commitments to trade at the stated price and size, with no right for the liquidity provider to reject the execution based on subsequent market movements. By offering a firm quote, the provider is essentially absorbing the market risk during the execution window.

This contrasts with 'last look' quotes, which are explicitly non-firm and conditional on a final check, thereby eliminating the rejection mechanism.

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