LAST DEALING DAY: The last day you may trade a particular product.
LAST DEALING TIME: The last time you may trade a particular product.
LEADING INDICATORS: Statistics that are considered to predict future economic activity.
LEVEL: A price zone or particular price that is significant from a technical standpoint or based on reported orders/option interest.
LEVERAGE: Also known as margin, this is the percentage or fractional increase you can trade from the amount of capital you have available. It allows traders to trade notional values far higher than the capital they have. For example, leverage of 100:1 means you can trade a notional value 100 times greater than the capital in your trading account.*
LEVERAGED NAME: SShort-term traders, referring largely to the hedge fund community.
LIABILITY: Potential loss, debt or financial obligation.
LIBOR: The London Inter-Bank Offered Rate. Banks use LIBOR as a base rate for international lending. Is being replaced by SONIA.
LIMITS/LIMIT ORDER: An order that seeks to buy at lower levels than the current market or sell at higher levels than the current market. A limit order sets restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/JPY is 117.00/05, then a limit order to buy USD would be at a price below the current market, e.g. 116.50. A Limit Order that is attached to a currently existing open position (or a pending entry order) with the purpose of closing that position may also be referred to as a “Take Profit” order.
LIQUID MARKET: A market which has sufficient numbers of buyers and sellers for the price to move in a smooth manner.
LIQUIDATION: The closing of an existing position through the execution of an offsetting transaction.
LONDON SESSION: 08:00 – 17:00 (London).
LONG POSITION: A position that appreciates in value if market price increases. When the base currency in the pair is bought, the position is said to be long. This position is taken with the expectation that the market will rise.
LONGS: Traders who have bought a product.
LOONIE: Nickname for the Canadian dollar or the USD/CAD (U.S. Dollar/Canadian Dollar) currency pair.
LOT: A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
