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Leading Indicators Statistics that are considered to predict future economic activity.
Leverage The ratio of the amount used in a transaction to the required security deposit (margin).
Liability In terms of foreign exchange, the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction. 
LIBOR The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank. 
Limit Order An order to buy or sell foreign currency or pairs of currencies at a specified price or exchange rate. A Limit Order to buy generally will be executed when the ask price equals or falls below the price or exchange rate specified in the Limit Order. A Limit Order to sell generally will be executed when the bid price equals or exceeds the price or exchange rate specified in the Limit Order. Customers should note, however, that market conditions may often prevent execution of an individual customerís Limit Order despite other dealing activity at that price level.
Liquidating Order An order to close out one or more open positions.
Liquidity The ability of a market to accept large transaction with minimal to no impact on price stability.
Long Position In foreign exchange trading, when the base currency in the pair is bought, the position is said to be long in that currency. It is understood that when the base currency in the pair is "long" the second currency will be "short".
 
Loss Loss incurred as a result of a transaction.
Lot A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
Ladder: Dealers analysis of the forward book or deposit book showing every existing deal by maturity date, and the net position at each future date arising.
Lagging Indicator: A measure of economic activity which tends to change after change has occurred in the overall economy eg. CPI.
Lapsed rights: Rights for which call payments have not been made by the acceptance date.
Last notice day: The final day on which notices of intent to deliver on futures contracts may be issued.
Last trading day: The day on which trading ceases for an expiring contract.
Lay off: To carry out a transaction in the market to offset a previous transaction and return to a square position.
LDC: Less developed countries, often used with respect to secondary debt market.
Leading Indicators: Statistic that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.
Leads and Lags: The effect on foreign trade payments of an anticipated move in the exchange rate, normally a devaluation. Then payment of imports is faster and export receipts is slowed down.
Left-hand side: Taking the left hand side of a two way quote i.e. selling the quoted currency.
Leverage: In options terminology, this expresses the disproportionately large change in the premium in terms of the relative price movement of the underlying instrument.
Levy: An option model
Liability: In terms of foreign exchange, the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un matured forward or spot transaction.
LIBID: The London Interbank Bid Rate. The rate charged by one bank to another for a deposit.
LIBOR: The London lnterbank Offered Rate, the rate charged by one bank to another for lending money.
LIMEAN: Calculated from the mean average of LIBOR and LIBID.
Liee: French term for a swap.
Life of contract: The period between the beginning of trading in a particular future and the expiration of trading.
LIFFE: London International Financial Futures Exchange
LIMEAN: The average of the LIBOR and LIBID rates.
Limit down: The maximum price decline from the previous trading day's settlement price permitted in one trading session.
Limit move: A price that has advanced or declined the permissible limit permitted during one trading session.
Limit order: An order to buy or sell a specified amount of a security at a specified price or better.
Limit up: The maximum price advance from the previous trading day's settlement price permitted in one trading session.
Limit: When residents of a country are prohibited from buying other currencies even though non-residents may be completely free to buy or sell the national currency.
Limited convertibility: An arrangement by which a bank agrees to lend to the line holder during some specified period any amount up to the full amount of the line.
Lines: Any transaction that offsets or closes out a previously established position.
Liquidation: The ability of a market to accept large transactions.
Liquidity: A futures trader who normally trades on an exchange on his/her own account.
Local: A market is locked when the bid price equals the asked price.
Locked market: One of the key commercial interest rates normally referring to Germany although such rates exist in France, Belgium, and Switzerland. An interest rate for a loan against the security of pledged paper.
Lombard Rate: A forward purchase and sale with a brief uncovered position between them. This may also be referred to as long short dates.
Long dated shorts: The holding of an excess of a particular currency.
Long: The purchase of futures contracts for price protection purposes, as a defensive position against an increase in cash prices, or falling interest rates.
Long Hedge: An option that permits exercise at any rate that existed during the option period but only exerciseable after the option period.
Look Back: zz
Look Forward: The 1987 agreement between the G5 calling for a halt in the dollars decline, re-establish balanced trade and non inflationary growth.
Louvre Accord: Luxembourg Inter-bank Offered Rate.
LXBOR:  

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