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Trader's dictionary

The Trader’s Dictionary contains explanations of many of the financial terms that successful traders use on a daily basis. This Glossary covers over 200 terms related to the world of finance and trading. Knowing the terms and understanding their meanings will help you learn about trading.

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There are currently 10 names in this directory beginning with the letter L.
L

Leverage
Leverage - leverage, broker's funds, thanks to which a trader can open a position with a volume exceeding his margin.

Liabilities
Liabilities - in accounting, this is a part of the balance sheet that characterizes the composition and volume of debts and obligations of the enterprise at the moment. In the column of liabilities there are: borrowed funds, deferred tax liabilities, accounts payable, deferred income and more.

Liquidity
Liquidity is the volume of a traded asset currently available on the market.

Liquidity consumer
Liquidity consumer is a market participant, usually a trader, who consumes liquidity from the order book. Liquidity is consumed by market orders.

Liquidity supplier
Liquidity supplier is a market participant, usually a market maker that provides liquidity to other trading participants. Liquidity deliveries are the placement of limit orders.

Listing
Listing - the inclusion of shares of a particular company in the list of securities that can be placed on a particular exchange and participate in exchange trading. Listing is a procedure for preparing securities and transparency ("openness") of the company's activities to the requirements established by the exchange.

LMT
LMT is the ticker symbol for Lockheed Martin Corp.

Long
Long - a "long" transaction, or a transaction to buy.

Lot
Lot - volume per trade equal to 100,000 units of the underlying instrument. For example, buying one lot of EUR/USD would equal buying 100,000 EUR. In digital terms, it is measured as 1.0 (100,000 base units), 0.1 (10,000 base units), 0.01 (1,000 base units).
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