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.