Glossary

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Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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  • Last dealing day
    The last day you may trade a particular product.
  • Last dealing time
    The last time you may trade a particular product.
  • Level
    A price zone or particular price that is significant from a technical standpoint or based on reported orders/option interest.
  • Leveraged names
    Short-term traders, referring largely to the hedge fund community.
  • Liability
    Potential loss, debt or financial obligation.
  • LIBOR
    LIBOR is a leading interest rate benchmark, set each day according to estimates from up to 18 global banks. It stands for London Interbank Offered Rate. There are LIBOR rates for multiple different currencies: including GBP, USD, EUR and more.

    LIBOR is calculated by surveying banks to find out the rates they would charge each other on loans of various maturities, based on the current economic outlook. The LIBOR rate is an average of what the banks will charge each other, and is then used across the global financial system, particularly for pricing derivatives.

    Usage of LIBOR (and other IBORs) is being phased out, to be replaced with a near-risk-free rate (RFR).
  • Liquid market
    A market which has sufficient numbers of buyers and sellers for the price to move in a smooth manner.
  • London session

    The London trading session is one of four main forex trading sessions, alongside Sydney, Tokyo and New York. According to a 2019 report by IFS, the London session accounts for 34% of the trading activity on the global forex market.

    The trading hours for the session fall within official business hours in London, between 07:00 – 16:00 GMT (Greenwich Mean Time).

    Sometimes the London session is referred as the ‘European session’, as considered the financial trading capital of Europe.

    What is the best time to trade the London forex session?

    The best time to trade the London forex session depends on what you’re looking for as a trader. However, both volatility and volume tend to peak as the London session opens, during overlaps with the Tokyo and New York sessions, and when macroeconomic data is published.

    Toward the end of the London morning session, volatility decreases as FX traders break for lunch before the New York session.

  • Longs
    Traders who have bought a product.
  • Loonie
    Nickname for the Canadian dollar or the USD/CAD (US dollar/Canadian dollar) currency pair.
  • Lot
    A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.