Finance

Category: L

  • Long Hedge

    ResourcesSee AlsoBuying Hedge Futures Trading Consumer Protection Consumer Finance

  • Long

    Concept of Long in Futures TradingIn this context of financial law, the following are some alternative definitions of Long: (a) One who has bought a futures contract to establish a market position; (b) a market position that obligates the holder to take delivery; (c) one who owns an inventory […]

  • Lookalike Option

    Concept of Lookalike Option in Futures TradingIn this context of financial law, the following is a definition of Lookalike Option: An over-the-counter option that is cash settled based on the settlement price of a similar exchange-traded futures contract on a specified trading day.

  • Ladder Option

    Concept of Ladder Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) that locks in gains once the underlying asset reaches certain price […]

  • Lookback Option

    Concept of Lookback Option in Futures TradingIn this context of financial law, the following is a definition of Lookback Option: An exotic option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option. Lookback options allow […]

  • Latency

    Concept of Latency in Futures TradingIn this context of financial law, the following is a definition of Latency: The amount of time that elapses between the placement of a market order or marketable limit order on an electronic trading system and the execution of that order.

  • Lock-in Agreement

    Lock-in Agreement in the Context of Mortgage RefinancingsIn this context, a definition of Lock-in Agreement may be distilled, worded as follows: A written agreement guaranteeing a homebuyer a specific interest rate on a home loan provided that the loan is closed within a certain period, such as […]

  • Locked Limit

    Concept of Locked Limit in Futures TradingIn this context of financial law, the following is a definition of Locked Limit: A price that has advanced or declined the permissible limit during one trading session, as fixed by the rules of an exchange. Also called Limit Move.

  • Large Traders

    Concept of Large Traders in Futures TradingIn this context of financial law, the following is a definition of Large Traders: A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one exchange equaling or exceeding […]

  • Lot

    Concept of Lot in Futures TradingIn this context of financial law, the following is a definition of Lot: A unit of trading. See Even Lot, Job Lot, and Round Lot.

  • Limit Only

    Concept of Limit Only in Futures TradingIn this context of financial law, the following is a definition of Limit Only: The definite price stated by a customer to a broker restricting the execution of an order to buy for not more than, or to sell for not less than, the stated price.

  • Limit Move

    ResourcesSee AlsoLocked Limit Futures Trading Consumer Protection Consumer Finance

  • Leveraged Loan

    Leveraged Loan credit default swap (Cds)Concept of Leveraged Loan credit default swap (Cds) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit default swap (a contract designed to transfer the credit exposure of debt obligation […]

  • Lookalike Swap

    Concept of Lookalike Swap in Futures TradingIn this context of financial law, the following is a definition of Lookalike Swap: An over-the-counter swap that is cash settled based on the settlement price of a similar exchange-traded futures contract on a specified trading day.

  • Last Notice Day

    Concept of Last Notice Day in Futures TradingIn this context of financial law, the following is a definition of Last Notice Day: The final day on which notices of intent to deliver on futures contracts may be issued.