Glossary

Leading indicators

– A group of national statistics that are considered one of the strongest predictors of the future of the economy.

Leverage

– Leverage is another term for margin. It is the difference between the balance of a transaction and the deposit required to place the transaction.

LIBOR

– An acronym for the London Interbank Offered Rate, which is the rate at which banks borrow money from other banks in the UK.

Limit order

– A currency order with restrictions, such as the maximum or minimum price, built into the order.

Liquidation

– Liquidation occurs when one position is closed by opening another position that offsets the first.

Liquidity

- Liquidity of a market measures the ability of the market to meet large transactions or a high number of transactions with little to no effect on the stability of prices.

Long position

– An open position that increases in value when the market price increases.

Lot

– A basic unit of measurement of the minimum value of a transaction. Each transaction is made up of a number of lots.