Forex Glossary

Forex Terms starting in "L"

Forex Terms starting in "L"

  • Lay Off →

    A layoff is the execution of a transaction in the market to offset a previous transaction and return to a flat position.

  • LDC →

    Less developed countries, often used when discussing the secondary debt market.

  • Leading Indicators →

    A fundamental or technical indicator that changes before the market as a whole and therefore used to predict changes in market direction.

  • Leverage →

    The ratio of the transaction size to the actual investment used for margin.

  • Liability →

    An obligation of one party arising from past transactions or events.

  • LIBOR →

    The London Inter-Bank Offered Rate.

  • LIFFE →

    London International Financial Futures Exchange.

  • Limit Order →

    A risk management tool to buy or sell at a specific price or better.

  • Liquidation →

    The closing of an open position by the buying or selling of equally sized position in the opposite direction.

  • Liquidity →

    The degree of an asset's ability to be converted to cash at its fair market price

  • Long →

    A market position where the trader has bought a currency.

  • Long Position →

    Action taken by trader to buy a currency.

  • Loonie →

    Slang for the Canadian Dollar

  • Lot →

    A standard trading term referring to an order of 100,000 unit.

Forex Trading Terms (Alphabetical)