Finance

Category: L

  • Licensed Warehouse

    Concept of Licensed Warehouse in Futures TradingIn this context of financial law, the following is a definition of Licensed Warehouse: A warehouse approved by an exchange from which a commodity may be delivered on a futures contract. See Regular Warehouse.

  • Limit

    Concept of Limit (Up or Down) in Futures TradingIn this context of financial law, the following is a definition of Limit (Up or Down): The maximum price advance or decline from the previous day’s settlement price permitted during one trading session, as fixed by the rules of an exchange. In […]

  • Long Form

    Concept of Long Form in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A confirmation that is independent of any master agreement incorporated by reference. Since the inception of Master Confirmation Agreements (MCAs), this term has also been […]

  • Liquidation

    Concept of Liquidation in Futures TradingIn this context of financial law, the following is a definition of Liquidation: The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering. See Cover, Offset.

  • Loan Origination Fees

    Loan Origination Fees in the Context of Mortgage RefinancingsIn this context, a definition of Loan Origination Fees may be distilled, worded as follows: Fees charged by the lender for processing a loan; often expressed as a percentage of the loan amount.

  • Long the Basis

    Concept of Long the Basis in Futures TradingIn this context of financial law, the following is a definition of Long the Basis: A person or firm that has bought the spot commodity and hedged with a sale of futures is said to be long the basis

  • Leaps

    Concept of Leaps in Futures TradingIn this context of financial law, the following is a definition of Leaps: Long-dated, exchange-traded options. Stands for ‘Long-term Equity Anticipation Securities.’

  • Libor

    Concept of LIBOR in Futures TradingIn this context of financial law, the following is a definition of LIBOR: The London Interbank Offered Rate. The rate of interest at which banks borrow funds (denominated in U.S. dollars) from other banks, in marketable size, in the London interbank market. […]

  • London Gold Market

    Concept of London Gold Market in Futures TradingIn this context of financial law, the following is a definition of London Gold Market: Refers to the dealers in the London Bullion Market Association who set (fix) the gold price in London. See Gold Fixing.

  • Liquid Market

    Concept of Liquid Market in Futures TradingIn this context of financial law, the following is a definition of Liquid Market: A market in which selling and buying can be accomplished with minimal effect on price.

  • Lockbox

    Definition of LockboxThis is the meaning of Lockbox published by Marco Terry: A bank treasury management system. It is desgined to receieve payments by mail and deposit them to an account as quickly as possible. Most bank lockbox systems also scan invoices and documents and provide online […]

  • Local

    Concept of Local in Futures TradingIn this context of financial law, the following is a definition of Local: An individual with exchange trading privileges who trades for his own account, traditionally on an exchange floor, and whose activities provide market liquidity. See Floor Trader, E-Local.

  • Limit Order

    Concept of Limit Order in Futures TradingIn this context of financial law, the following is a definition of Limit Order: An order in which the customer specifies a minimum sale price or maximum purchase price, as contrasted with a market order, which implies that the order should be filled as […]

  • Locked-In

    Concept of Locked-In in Futures TradingIn this context of financial law, the following is a definition of Locked-In: A hedged position that cannot be lifted without offsetting both sides of the hedge (spread). See Hedging. Also refers to being caught in a limit price move.

  • Location

    Concept of Location in Futures TradingIn this context of financial law, the following is a definition of Location: A Delivery Point for a futures contract.