Forex Software Strategies Library Contribute Partnership

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Last The average value between the most recent Bid and Ask (or the most recent Bid).
Leverage The degree to which an investor or business is utilizing borrowed money. The credit provided by the bank for margin trading.
Leverage Ratio The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.
LIBOR London Inter-Bank Offer Rate. The rate of interest that major international banks in London charge each other for borrowings.
Limit The customer's instruction to close a profitable position at a specific price.
Limit Order An order that instructs a broker to buy or sell a specified amount of a security at a specified price or at a better price.
Limit Position Maximum of allowable size of an open position.
Limit Sell Order The order where a client asks to sell assets at or above a price limit even if current price of the asset is below that limit.
Linear Regression Trendline Linear regression is used to explain and/or predict. The general form is: Y = a + bX + u Where Y is the independent variable, X is the dependent variable, a is the intercept, b is the slope, and u is the regression residual .
Liquidation Any transaction that offsets or closes out a long or short position.
Liquidation Value Net amount that could be realized by selling the assets of a firm after paying the debt.
Liquidity A high level of trading activity, allowing buying and selling with minimum price disturbance. Also, a market characterized by the ability to buy and sell with relative ease.
Liquidity Preference Theory The theory that the forward rate exceeds expected future interest rates.
Locked Limit A market that, if not restricted, would seek price equilibrium outside the limit but, instead, moves to the limit and ceases to trade.
Long One who has bought a contract to establish a market position and who has not yet closed out this position through an offsetting sale.
Long Hedge The purchase of a futures contract in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price.
Long Position Owning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold). For equities, a long position occurs when an individual owns securities.
Loss The decrease in the value of an investment or asset.
Loss Taking The closing of a position after reaching the critical level of loss.
Lot A measure of quantity. In the most brokers one lot equals 100 000 units of the base currency.

Top