Glossary - L

LONDON BULLION MARKET ASSOCIATION
The London bullion market is a market for the trading of gold and silver. Trading is conducted amongst members of the London Bullion Market Association (LBMA), loosely overseen by the Bank of England. Most of the members are major international banks or bullion dealers and refiners.
 
LEVERAGE
Leverage is a general term for any technique used to multiply gains and losses. Common ways to attain leverage are borrowing money and using derivatives. Also known as gearing.
 
LIBOR
London Inter Bank Offer rate.
 
LIMIT ORDER
An order to buy a financial product at no more than a specific price, or to sell a security at no less than a specific price.
 
LIMIT PRICE MOVE. LIMIT UP AND LIMIT DOWN
Some markets specify the maximum amount by which the products traded on that market can move in a trading session. A product which has increased by the maximum amount is known as limit up. A product which has decreased by the maximum amount is known as limit down.
 
LINE CHART
Graph which displays information as a series of data points connected by straight line segments.
 
LIQUIDITY
The degree to which a market has large numbers of both buyers and sellers.
 
LONG
One who has bought with the view that prices will rise.
 
LONG TERM REFINANCING OPERATION (LTRO)
LTRO is a process by which the ECB provides financing to eurozone banks. The aim is to provide liquidity to banks enabling them to continue thier interbank lending and other loan operations.
 
LOT
The standard unit of trading. One standard lot equals 100,000 units of the base currency, a mini lot equals 10,000 units, and a micro lot equals 1,000 units.