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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.

Liquidit -– 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.