Foreign Exchange Market, forex dictionary, FX News, forex definition

Here you'll find the most important definitions, terms, and abbreviations you'll come across in the Forex business.
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L: One of multiple measures of the money supply that includes M3 plus longer-term...
labor: Work of any type for organizations or individuals, typically done for a wage...
labor burden: The overall cost consisting of all indirect labor costs incidental to operations. Also known as indirect labor.
Labor Cash Earnings - Japan: The average amount of pre-tax earnings per regular employee, including overtime...
Labor Costs - Euro-zone: Euro-zone Labor Costs captures employers' total cost of employing a labor force....
labor force: The total number of people employed or seeking employment in a particular country or region. Also known as work force.
labor relations: The relationship between a firm's upper management and the rest of its employees.
labor-intensive: Having or pertaining to the quality of requiring significant amounts of labor, rather than capital.
Labour Price Index - Australia: Measures quarterly changes in Australian wages. Two versions of the Labor Price...
Labour Productivity - Canada: The average productivity level of Canadian workers. Labour Productivity is calculated...
ladder strategy: A strategy that seeks to reduce interest rate risk by creating a portfolio with...
Laffer Curve: A curve assuming that for a given economy, there exists an optimal income tax...
laggard: A stock that is underperforming.
lagging indicator: An economic indicator that changes after the overall economy has changed.
laissez-faire: The concept that an economic system should be driven by free market forces, in contrast to government intervention.
LAK: The ISO currency code for the Laos New Kip. Learn more about Laos and the Laos Kip at GoCurrency.com
lambda: The value representing the expected percentage change in the price of an option...
land banking: The practice of attaining land and holding it for future use.
land contract: An installment contract written and agreed upon between a buyer and a seller, for the sale of property.
land lease: A lease in which only the land is rented. Also known as ground lease.
landlocked: A lot without direct access to a public thoroughfare.
landlord: The name denoted for somebody who rents property to another party, called a tenant. Also known as lessor.
Laos New Kip: The official currency of Laos. Learn more about Laos and the Laos Kip at GoCurrency.com
lapse: A period during which a right, privilege, or insurance policy is not in effect due to a failure to act.
lapsed option: An option that has expired without being exercised.
large cap: Large cap refers to over $5 billion capitalization. Firms are generally classified...
Large Retailers' Sales - Japan: The total value of goods sold in large department stores, chain convenience...
last: The most recent trade of a security.
Last In First Out: Abbreviated as LIFO. A method of valuing inventory in which the items acquired last are treated as the ones sold first.
last sale: The most recent price during a trading session, or the price of the final transaction after the market closes.
last trading day: The final day during which trading in a particular option contract is permitted.
last-sale reporting: The electronic notification by a market maker to NASD of the price and number...
Latvian Lat: The currency of Latvia Learn more about the Latvian Lat and Latvia at GoCurrency.com
launch: The process of introducing a new good or service into the market. Also known as rollout.
launder: To disguise the source of illegal or secret funds or profits, usually by transmittal...
law day: The date on which an obligation must be paid. Also known as due date.
law of demand: The economic principle that if the supply is held constant, an increase in demand leads to an increased market price.
law of large numbers: The statistical fact that it becomes harder and harder to maintain a given level...
law of one price: An economic principle, stating that in an efficient market, a security must...
law of supply: An economic principle, stating that if demand is held constant, an increase...
lawful money: Money having legal tender status.
Lawrence Kudlow: Lawrence Kudlow serves as anchor of CNBC's business news show 'Kudlow & Company'...
layoff: The cutback of jobs, generally when a firm is experiencing financial difficulties.
LBO: Acronym for Leveraged Buyout. Takeover of a firm or controlling interest in...
LBP: The ISO currency code for the Lebanese Pound. Learn more about the Lebanese Pound and Lebanon at GoCurrency.com
lead investor: A firm's principal provider of capital, such as the entity that originates and structures a syndicated deal.
lead manager: The commercial or investment bank which has primary responsibility for organizing...
lead time: The amount of time between the placing of an order and the receipt of the goods ordered.
lead underwriter: A commercial or investment bank, with the primary responsibility of organizing...
leaders: The highest-performing securities over a given time period. Opposite of laggard.
Leading Economic Index - Japan: A composite of 12 major leading indices for Japan . Movements in these indicators...
leading indicator: A leading indicator is an economic gauge that records changes before the overall...
Leading Indicators - Canada: A composite index designed to forecast developments in the Canadian economy....
Leading Indicators - United States: US Leading Indicators is a composite index designed to forecast trends in the...
Leading Indicators KoF Switzerland: Swiss KoF Leading Indicators A composite of business surveys from various sectors...
leading the market: The movement in advance of the market as a whole (i.e. a stock that begins to decline before a bear market).
leakage: The intentional or unintentional release of information before it is made available to the general public.
LEAPS: Acronym for Long-Term Equity Anticipation Securities. Long-term stock options...
lease: A written agreement under which a property owner allows a tenant to use the property for a specified period of time and rent.
lease-purchase agreement: A type of lease in which the lessee can apply lease payments toward the purchase of the property if he or she chooses.
leaseback: An arrangement in which one party sells a property to a buyer and the buyer...
leasehold: The right to hold or use property for a fixed period of time at a given price,...
leasehold improvement: An improvement of a leased asset that increases the asset's value. The expense...
Leasing: See lease
Lebanese Pound: The official currency of Lebanon. Learn more about the Lebanese Pound and Lebanon at GoCurrency.com
ledger: An accounting book of final entry where transactions are listed in separate accounts.
leg: Leg refers to one side of an option spread, and may be long or short.
legacy: The property transferred by a will.
legal: Having the characteristic of meeting the requirements under law.
legal age: The age at which a person is legally permitted to enter into contracts without...
legal assets: Any property that can be used for the repayment of a debt.
legal entity: An individual or organization which is legally permitted to enter into a contract,...
legal list: A list of legal investments for savings banks and trust funds, as determined...
legal monopoly: A firm granted by the federal government the exclusive rights of offering a...
legal risk: A description of the potential for loss arising from the uncertainty of legal...
legal tender: A country's currency that must be accepted as payment for a debt.
legatee: The recipient of a legacy.
legislative risk: The risk that a new law or a change in an existing law could have a significant impact on an investment.
lemon: A good that has low quality, but does not meet expectations, or fails to function as promised.
lend: To provide the use of money or something else of value, with the understanding...
lender: A private, public or institutional entity which makes funds available to others to borrow.
lender of last resort: A type of lender that provides money to a bank facing unusually heavy withdrawals.
lending: See lend.
lending at a rate: The uncommon brokerage practice of paying a client interest on the credit balance resulting from a short sale.
Lesotho Loti: The currency of Lesotho. Learn more about the Lesotho Loti and Lesotho at GoCurrency.com
lessee: An individual who leases a property from its owner. Also known as tenant.
lessee member: A person who leases the use of an exchange membership from another member.
lessor: A property owner who rents to another party, called a tenant. Also known as landlord.
letter of comment: A letter sent by the SEC to a firm planning a securities offering, suggesting...
letter of credit: Abbreviated as L/C, refers to a binding document that a buyer can request from...
letter of intent: A letter from one firm to another acknowledging a willingness and ability to...
letter security: A security sold directly by the issuer to an investor, bypassing SEC registration.
letters patent: An instrument issued by a governing body, granting a right or conveying title to a private individual or organization.
letters testamentary: Documents issued by the court detailing that an individual, bank, or organization...
Level I quotes: The quotes of the best bid and ask prices for a given Nasdaq or OTCBB stock.
Level II quotes: The quotes of the bid and ask prices for each individual market maker for a...
Level III quotes: The Level II quotes combined with the ability to enter quotes, execute orders,...
level load: The sales charge that does not vary depending on how long the investor held the investment.
level playing field: An environment in which all companies in a given market must follow the same rules and are given an equal ability to compete.
level premium insurance: A policy for which the premiums do not change for the entire duration of the...
level term insurance: A particular life insurance policy whose face value does not change but whose premiums gradually rise over time.
leverage: In context, leverage and margin refer to the same thing. When a trader opens...
leverage ratio: See leverage.
Leveraged Buyout: Abbreviated as LBO, refers to the takeover of a firm or controlling interest...
leveraged investment company: An investment firm whose charter permits it to borrow money for its investing activities.
leveraged lease: A type of lease in which the lessor puts up some of the money required to purchase...
leveraged recapitalization: A tactic utilized by the target of a hostile takeover in which a firm makes...
levy: To collect, often in the context of a tax.
liabilities: The plural of liability.
liability: An obligation that legally binds an individual or company to settle a debt....
liability insurance: An insurance coverage, protecting against claims alleging that one's negligence...
liability swap: An interest rate swap designed to alter the cash flow characteristics of an...
liable: Having the characteristic of being legally responsible
libel: Defamation by written or printed words, pictures, or in any form other than by spoken words or gestures.
Liberian Dollar: The currency of Liberia. Learn more about the Liberian dollar and Liberia at GoCurrency.com
LIBOR: Acronym for London Inter-Bank Offer Rate. The interest rate that the banks charge...
Libyan Dinar: The currency of Libya. Learn more about the Libyan Dinar and Libya at GoCurrency.com
license: The permission to engage in a certain activity, granted by the appropriate authority.
licensing: The granting of consent to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.
Liechtenstein Franc: The currency of Liechtenstein. Liechtenstein uses the Swiss Franc,...
lien: The legal claim of one person upon the property of another person to secure...
lien affidavit: An affidavit outlining all liens against a property or stating that no such liens exist.
lienee: An individual owning property on which another party (lienor) possesses a right of lien.
lienor: An Individual holding a lien.
life annuity: A type of annuity that continues to pay out as long as the annuitant is still living.
life cycle: The following stages through which a product passes: research and development,...
life expectancy: The length at which a given person is expected to live.
life expectancy method: A type of annuity distribution method that determines payments from life expectancy charts.
life insurance: A type of insurance that is paid to a beneficiary upon the death of the policyholder.
lifecycle fund: A highly diversified mutual fund intended to remain appropriate for investors...
lifetime cap: A limit on the amount that the payments of an adjustable rate mortgage can increase...
lifetime learning credit: A tax credit intended to reduce education costs in any year, and claimed once per year.
LIFFE: Acronym for London International Financial Futures and Options Exchange. The three largest UK futures markets.
LIFO: Acronym for Last In First Out. A method of valuing inventory in which the items...
like-kind exchange: An exchange of similar investment assets, on which gains may be tax-deferred.
limit: A Limit, is an order to close a trade when the market moves a specified amount...
limit down: The maximum price drop allowed on a futures contract in a single trading day.
limit entry: An Entry Order is an order to enter the market at a specified price.Entry orders...
limit move: The greatest price change permitted for a given futures contract in a single...
limit order: A Limit, is an order to close a trade when the market moves a specified amount...
limit order book: A record of unexecuted limit orders which is maintained by specialists. These...
limit order information system: An electronic system, providing subscribers with information about securities being traded on participating exchanges.
limit price: The price specified in a limit order.
limit up: The maximum price increase permitted on a futures contract in a single trading day.
limit-on-close order: An order to buy or sell a specific amount of stock at the close, but only under...
limited company: Abbreviated as Ltd. A particular business structure used in Europe and Canada,...
limited discretionary account: A particular agreement in which a client has given his broker the ability to make certain types of trades without prior consent.
limited liability: A type of investment in which a partner or investor cannot lose more than the amount invested.
Limited Liability Company: Abbreviated as LLC, and refers to a type of firm, authorized only in certain...
Limited Liability Partnership: Abbreviated as LLP, and refers to another name for a Limited Liability Firm, often used by professional associations.
limited partner: See limited partnership
limited partnership: A business organization with at least one general partners, who manage the business and assume legal debts and obligations.
limited risk: A type of investment in which a partner or investor cannot lose more than the amount invested.
line of credit: An agreement in which a bank or vendor extends a predetermined amount of unsecured...
linear chart: The standard chart type, on which a given distance always represents the same absolute change in price.
linear regression: A statistical technique in which a straight line is fitted to a set of data...
link share: Link Sharing - (or Reciprocal Link Exchange) is the practice of exchanging links...
linkage: The ability to buy or sell a contract on one exchange and then later sell or buy the same contract on another exchange.
liquid: 1 Liquid Market - the degree to which market participants are willing to buy...
liquid market: 1 Liquid Market - the degree to which market participants are willing to buy...
liquidate: To convert (inventory, securities, or other assets) into cash
liquidated damages: The amount required to satisfy a loss resulting from breach of contract.
liquidation: See liquidate.
liquidation preference: Liquidation preference specifies the peeking order of creditors during bankruptcy...
liquidation value: The estimated amount of money that an asset or firm could quickly be sold for, if it were to decide to liquidate.
liquidity: 1 Liquid Market - the degree to which market participants are willing to buy...
liquidity agreement: An agreement that allows an asset holder to convert his/her asset into cash.
liquidity event: The manner in which an investor plans to close out an investment. For example,...
liquidity ratio: The total dollar value of cash and marketable securities divided by current...
liquidity risk: The risk resulting from the difficulty of selling an asset. Some assets are...
List of Candlestick Patterns: View Introduction to Candlestick PatternsView List of Bullish Candlestick Reversals...
list price: See Manufacturer's suggested retail price.
listed: Having the characteristic of being traded on a major exchange, such as NYSE or AMEX. opposite of over-the-counter.
listed option: An option authorized by an exchange for trading. Also known as exchange-traded option.
listing: The acceptance of a security for trading on a registered exchange.
listing requirements: The set of conditions implemented by a given stock exchange upon firms that want to be listed on that exchange.
Lithuanian Litas: The currency of Lithuania. Learn more about the Lithuanian Litas and Lithuania at GoCurrency.com
litigate: Take legal action to settle a dispute in a court of law.
Little Board: See American Stock Exchange.
living benefits: Living Benefits are an insurance option where policy holders may access benefits...
living trust: A type of trust created for the trustor and administered by another party while...
living will: A document outlining the life-prolonging measures one does, and does not, want...
LKR: The ISO code of Sri Lanka. Learn more about Sri Lanka and the Sri Lankan Rupee at GoCurrency.com
LLC: Acronym for Limited Liability Firm, which refers to a type of firm, authorized...
LLP: Acronym for Limited Liability Partnership. Another name for a Limited Liability...
LMV: Acronym for Long Market Value. The current market value of stocks held (i.e....
load: A sales charge added to the purchase and/or sale price of some mutual funds and annuities. opposite of no-load.
load fund: A mutual fund which carries a load. opposite of no-load fund.
load-adjusted return: The return on a mutual fund adjusted downward to reflect any sales fees, whether front-end or back-end.
loading: An amount an insurance company adds to the basic premium to cover the expense...
loan: An arrangement in which a lender gives money or property to a borrower, and...
loan commitment: A formal offer by a lender explicating the terms under which it agrees to lend...
loan consent agreement: An agreement, required by the SEC, authorizing a securities broker to lend securities carried for a customer's account.
loan note: A form of vendor finance or deferred payment, where the purchaser acts as a...
loan schedule: A listing of the amounts of principal and interest, due dates, and balance after payment for a given loan.
loan sharking: Charging an illegally high interest rate on a loan. also called usury.
loan stock: An unsecured stock delivered to an entity that has furnished a loan for a firm, and earns interest at a fixed rate.
loan value: The quantity of money that a lender is willing loan a borrower.
loan-deposit ratio: The amount of a bank's loans divided by the amount of its deposits at any given...
loan-to-cost: Abbreviated as LTC, which refers to the ratio of the price paid for an asset...
loan-to-value: Abbreviated as LTV, which refers to the ratio of the fair market value of an...
loan-value ratio: The quantity borrowed divided by the appraised value of the collateral, expressed as a percentage.
local: A futures trader who trades mostly for his or her own account.
local bill: A printed confirmation of transactions and open orders sent by a broker to a customer.
lock-in: A commitment by a lender, guaranteeing a given interest rate for a predetermined period of time. Also known as rate lock.e
lock-limit: A system in which prices may move only up to a certain amount in either direction in a given session.
lockbox: A service offered by banks to firms in which the firm receives payments by mail...
locked in: A situation in which an investor is reluctant to sell a particularly profitable investment due to the tax consequences.
locked market: A market for a stock in which the bid price equals the ask price, resulting in the bid/ask spread to be zero.
lockup period: An interval during which an investment may not be sold. In the case of an IPO,...
logarithmic chart: A market for a stock in which the bid price equals the ask price (in other words, the bid/ask spread is zero).
logistics: A chart for which the price scale (usually on the vertical axis) is skewed so...
lognormal distribution: A probability distribution in which the log of the random variable is normally...
London Inter-Bank Offer Rate: Abbreviated as LIBOR, and refers to the interest rate that the largest international banks charge each other for loans.
London International Financial Futures and Options Exchange: LIFFE. The three largest UK futures markets.
long: A trader is in a LONG POSITION when she buys a currency pair.Shorting is the...
Long Bond: A 30-year bond, which is the longest and most widely traded maturity bond issued by the U.S. Treasury.
long hedge: Buying futures to hedge against the sale of a cash commodity. also called buying hedge.
long leg: The part of an option spread indicating a commitment to purchase the underlying security.
Long Market Value: Abbreviated as LMV, which refers to the current market value of stocks held...
long position: The state of actually owning a security, contract, or commodity. also called long. opposite of short.
long squeeze: Situation in which investors who hold long positions feel the need to sell into...
long straddle: A straddle in which a long position is taken in both a put and a call option....
long-term: In the context of bonds, long-term refers to more than 10 or years.
long-term assets: On a balance sheet, the value of a firm's property, equipment and other capital...
long-term care insurance: An insurance policy that provides benefits for the chronically ill or disabled over a long period of time.
long-term debt: Loans and obligations with a maturity of longer than one year; usually accompanied...
Long-Term Equity Anticipation Securities: Abbreviated as LEAPS, which refers to long-term stock options or index options,...
long-term gain or loss: A capital gain or loss on an investment held for at least some minimum amount of time, generally a year and a day.
long-term lease: A lease of more than ten years.
long-term mortgage: A mortgage lasting more than 40 years. These can be considerably more expensive...
look-ahead bias: The utilization of information in a simulation that would not be available during...
look-through earnings: Propagated by Warren Buffet, this concept for analyzing investments judges an...
lookback option: A call or put option whose strike price is not determined until the option is...
loophole: A flaw in the law, which allows one to circumvent the law's intention without actually breaking that law.
loose credit: A central bank policy designed to stimulate economic growth by lowering short...
loss: A decline in the value of an investment.
loss carryover: A capital loss that is not deductible in the current year because it exceeds...
loss leader: A good or service sold at a substantial discount in order to generate additional sales.
lot: Multiple shares held or traded together, usually in units of 100.
Lou Dobbs: Anchor and editor of "Lou Dobbs Tonight," Louis Earl Dobbs started his media...
low: Low is the lowest price a security has reached during a certain period of time....
low grade: A bond rating of B or lower, indicating some uncertainty as to the issuer's ability to meet the bond's obligations.
lows: Stocks which have reached new 52-week low prices in the current or most recent trading session. opposite of highs.
loyalty program: A program with the objective of lowering the turnover among users of a product...
LRD: The ISO currency code for the Liberian Dollar. Learn more about the Liberian dollar and Liberia at GoCurrency.com
LSL: The ISO currency code for the Lesotho Loti. Learn more about the Lesotho Loti and Lesotho at GoCurrency.com
LTC: Acronym for Loan-To-Cost. The ratio of the price paid for an asset to the value of the loan that will finance the purchase.
ltd: Limited firm. A particular business structure used in Europe and Canada, where...
LTL: The ISO currency code for the Lithuanian Litas. Learn more about the Lithuanian Litas and Lithuania at GoCurrency.com
LTV: Acronym for Loan-To-Value. The ratio of the fair market value of an asset to...
lucrative: Profitable.
lucrative title: Title obtained as a gift or at a price significantly below the market price.
LUF: The ISO currency code for the Luxembourg Franc.
lump sum: A single payment for the total amount due, as opposed to a series of periodic payments.
lump sum distribution: A single distribution all at once, rather than as a series of payments over time.
luxury tax: A tax levied on goods considered to be outside of the basket of necessities (i.e. expensive cars and yachts).
LVL: The ISO currency code for the Latvian Lat. Learn more about the Latvian Lat and Latvia at GoCurrency.com
LYD: The ISO currency code for the Libyan Dinar. Learn more about the Libyan Dinar and Libya at GoCurrency.com

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