Trader's Glossary


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There are currently 8 names in this directory beginning with the letter L.
Leverage is a tool that gives you the ability to borrow funds and buy assets with bigger exposure without committing extra capital.
Leveraged Products
Leveraged Products are the assets that allow traders to increase their exposure to the market without increasing their capital.
LIBOR is an abbreviation for the London Interbank Offered Rate. This is the benchmark interest rate at which banks lend to one another for short-term loans in the international interbank market.
Limit Order definition
A limit order is an order you set with your broker to execute a trade at a particular level, and not in the current market price.
Limit Up / Limit Down definition
Limit Up and Limit Down are the maximum amounts a price of a stock or any other financial instrument may increase (limit up) or decrease (limit down) during one trading session without triggering trading restrictions by the exchange. Limit Ups and Limit Downs aim to prevent volatility from reaching extreme levels and to safeguard traders from the resulting extreme risks.
Liquidity refers to the convertibility of a n asset or security into ready cash without affecting the market price. The level of liquidity has to do wit the balance between supply and demand for a particular asset on the market. High demand matched by equally high supply means high liquidity, and in that respect the convertibility of an asset into cash with ease.
Long Position
A trader who ‘goes long’ or enters a ‘long position’ refers to the trader who buys an asset and anticipates the market price to increase in order to make a profit.
A Lot or Standard Lot refers to the number of units in a standard contract size. Lot sizes vary from asset to asset. A Standard Lot of Gold for example is 100 Troy Ounces while a Standard Lot of Silver is 5,000 Troy Ounces. Whereas a Standard Lot in currency exchanges is 100,000 units of the base currency. Similarly, other instruments and commodities have different Standard Lot sizes.