Forex Game Glossary eng
Leading index
Shows an average of leading economic indicators such as factory orders, initial jobless claims, money supply, average workweek, building permits, quotes of common stocks, durable goods orders and consumer confidence. the leading index is believed to predict the pace of economic growth over the next six months. the index is calculated at the beginning of every month and released at 10:00 est (ny).
Leverage
An amount of money a broker is ready to give to a trader to trade on financial markets with larger trading volume. using the leverage, traders increase their deposits tenfold and even more. leverage is expressed in the ratio between the trader’s own funds and those funds borrowed from the broker: 1:10, 1:100, 1:500, etc. if traders use the leverage, their own money serves as collateral.
Libor
Stands for london interbank offer rate. libor is a commonly recognized indicator of the cost of funds to banks. this is the rate that determines the cost of loans the world’s largest banks provide each other with on the london interbank exchange. libor is one of the most widely used benchmarks for short-term interest rates. at present, it fixes rates for eur, usd, gbp, jpy, chf, cad, aud, dkk, and nzd. libor is calculated for various borrowing periods, ranging from overnight to one year.
Light Sweet
Is a standard oil brand which is extracted in texas (the usa). due to low content of sulfur and relatively high output of useful products, it is used mainly for gasoline processing. this kind of oil is in high demand in the usa and china. light sweet crude oil is a pricing benchmark for world types of oil. it is traded on nymex (new york mercantile exchange).
Limit order
Is a type of a pending order (see pending order) that enables entering the market at the given potentially important level after which the reversal is expected. limit order types are buy limit and sell limit
Liquidity
Is the degree to which an asset (currency, security, etc.) can be sold at the current market price. this term refers to market volatility and dynamics: a liquid market is a type of a market with large trading volumes where every trade incapable of making a significant impact
Locked positions
Positions of the same asset and volume opened on one account in opposite directions (buy and sell).
Lot
Is a trading unit on the market; the standardized quantity of goods making up a transaction, exchange-traded securities, a certain amount of currency on forex. lot also represents the trade volume (position, order)