When we trade financial products, the number one barrier is terminologies. In addition, even general terms we use in our lives in the financial world such as stock, forex, cryptocurrencies may have different meanings. In such a case, this site has prepared a convenient term dictionary. It’s a small thing, but please refer to it when you want to find out glossaries with one hand for all investors from beginners who have just started trading to experienced people.
Last Trading Day
The day on which trading ceases for an expiring contract.
To carry out a transaction in the market to offset a previous transaction and return to a square position.
Less developed countries, often used with respect to a secondary debt market.
Statistics that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.
Leads and Lags
The effect on foreign trade payments of an anticipated move in the exchange rate, normally devaluation. The importers speed up the payment for the imports, and exporters delay receiving payment for the exports.
In options terminology, this expresses the disproportionately large change in the premium in terms of the relative price movement of the underlying instrument.
In terms of foreign exchange: the obligation to deliver to counterparty an amount of currency, either in regards to a balance sheet holding at a specified future date, or in regards to an un-matured forward or spot transaction.
The London Interbank Bid Rate. The rate charged by one bank to another for a deposit.
LIBOR (London Interbank Offer Rate)
The London Interbank Offered Rate, the rate charged by one bank to another for lending money.
British Bankers’ Association average of interbank offered rates for dollar deposits in the London market based on quotations at 16 major banks. Effective rate for contracts entered into two days from date appearing.
London International Financial Futures Exchange.
(1)The maximum price fluctuation permitted by an exchange from the previous session’s settlement price for a given contract.
(2) In international banking the limit a bank is willing to lend in a country.
(3) The amount that one bank is prepared to trade with another.
(4) The amount that a dealer is permitted to trade in a given currency.
An order to buy or sell a specified amount of a security at a specified price or better.
Limit Order – Reserved Day Trading Deal
An order to perform a Day-Trading deal at a rate pre- defined by the customer, when and if such rate comes up in real market time. The Limit rate is superior to the existing rate at the time of reservation. The reservation order lasts for a period defined by the customer, and is associated by the necessary collaterals to facilitate the potential
Day Trading deal when, and if, activated under the pre- defined terms.
The maximum price advance from the previous trading day’s settlement price permitted in one trading session.
When residents of a country are prohibited from buying other currencies even though non-residents may be completely free to buy or sell the national currency, and foreign institutional investors have the liberty to buy and sell shares on the stock exchange of that country.
An arrangement by which a bank agrees to lend to the line holder during some specified period any amount up to the full amount of the line.
Any transaction that offsets or closes out a previously established position.
The ability of a market to accept large transactions without having any major impact on interest rates.
One of the key commercial interest rates, normally referring to Germany although such rates exist in France, Belgium, and Switzerland. An interest rate for a loan against the security of pledged paper.
A market position where the Client has bought a currency not previously owned. For example: long Dollars.
The purchase of futures contracts for price protection purposes, as a defensive position against an increase in cash prices or falling interest rates.
Nickname for the Canadian dollar or the USD/CAD (U.S. Dollar/Canadian Dollar) currency pair.
A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots.
＊These glossaries are based on easyMarkets educational tools.