Glossary – Trading
There are 17 names in this directory beginning with the letter L.
Lay Off
To carry out a transaction in the market to offset a previous transaction and return to a square position.
Level
A price zone or particular price that is significant technically 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, a leverage of 100:1 means you can trade a notional value 100 times greater than the capital in your trading account.
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/YEN is 117.00/05, then a limit order to buy USD would be at a price below the current market, e.g. 116.50.
Liquid market
A market which has sufficient numbers of buyers and sellers for the price to move in a smooth manner.
Liquidity
The ability of a market to accept large transactions with minimal to no impact on price stability.
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.
