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Latency Arbitrage

Latency arbitrage (LA) is a high-frequency trading strategy used to front run trading orders. Both institutional and retail traders are the victim of this predatory trading strategy. In this article I...

Liquidity risk

Liquidity risk is a type of market risk. It refers to a situation where buyers and sellers are unable to find matching orders to take the other side of their trades. When this happens, buyers may have...

Limit up / Limit down

Limit up and limit down are the maximum amounts a commodity future may increase (limit up) or decrease (limit down) in any single trading day.

Liabilities

A company’s liabilities are the debts and obligations represented on its balance sheet. They are the opposite of assets.

Leveraged ETFs

Leveraged ETFs are a form of exchange traded fund (ETF) that seek to deliver multiplied returns of the underlying benchmark they track. For instance, if the FTSE 100 increases 10% in a day, a 2x FTSE ...

Leveraged Products

Leveraged products are financial instruments that enable traders to gain greater exposure to the market without increasing their capital investment. They do so by using leverage. Any financial instru...

Long Position

A long position describes the process of buying an asset with the expectation that the price of the underlying will rise. It is also known as ‘going long’ or ‘taking a long position’, and long...

Liquidity

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Leverage

Leverage is a key feature of CFD trading and spread betting, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio...

Leverage Trading

Leverage trading, also known as margin trading, is a system which allows the trader to open positions much larger than his own capital. The trader needs only to invest a certain percentage of the posi...