Spread Betting Glossary: L
The degree to which a trader can invest more than he has to cover financially. Often lent by the broker to fund larger transactions, or inherent in the structure of an instrument, for example spread betting, where traders get the advantage of multiplying returns from small gains in the relevant market.
An abbreviation for London Inter Bank Bid Rate, the rate at which banks are prepared to lend from each other.
An abbreviation for London Inter Bank Offer Rate, the rate at which UK banks are prepared to inter-lend and usually the basis for financing transactions (such as mortgages).
An abbreviation for London International Financial Futures and Options Exchange, which encompassed the most significant futures exchanges in the UK market.
An order to automatically execute a closing trade when a position reaches a set price point, either as a limit to mitigate losses or a ceiling point at which the trader can automatically lock in a trading profit.
The frequency and ease of trade on a particular market, a liquid market has both demand and supply for the securities traded, allowing positions to be filled quickly and requiring minimal involvement from a market maker thereby keeping trading costs and commissions lower than corresponding illiquid markets.
A bullish position reflecting a forecast rise in the value of an asset; a positive trading position, as contrasted with going short.
The minimal unit of trade for options and futures contracts.
An abbreviation for the London Stock Exchange, the main provider of markets and securities trading in the UK, and the operator of the FTSE and other UK markets.