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| Last-in-first-out |
A method of valuing inventory that uses the cost of the most recent item in inventory first |
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| Last trading day |
The final day under an exchange's rules during which trading may take place in a particular futures or options contract. Contracts outstanding at the end of the last trading day must be settled by delivery of underlying physical commodities or financial instruments, or by agreement for monetary settlement depending upon futures contract specifications.
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| Leveraged portfolio |
portfolio that includes risky assets purchased with funds borrowed. |
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| 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. |
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| Limit order |
An order given to a broker by a customer which has restrictions upon its execution. The customer specifies a price and the order can be executed only if the market reaches or betters that price.
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| Limit price |
Maximum price fluctuation ( it also refferes to Client's Limit Order Price) |
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| Liquidation |
Any transaction that offsets or closes out a long or short position |
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| Liquidity |
A market is liquid when it has a high level of trading activity, allowing buying and selling with minimum price disturbance. Also a market characterized by the ability to buy and sell with relative ease.
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| Liquidity risk |
The risk that arises from the difficulty of selling an asset. It can be thought of as the difference between the "true value" of the asset and the likely price, less commissions.
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| Long |
One who has bought a contract(s) to establish a market position and who has not yet closed out this position through an offsetting sale; the opposite of short |
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| Long hedge |
The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price. |
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| Long position |
In the cash market, the ownership of securities. In the futures market, the purchase of a futures contract with no offsetting short position. In the options market, the purchase of an option with no offsetting short position |
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| Long straddle |
A straddle in which a long position is taken in both a put and call option. |
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