Commodity glossary L

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Glossaries - Commodity Glossary

    LBMA   

  • The London Bullion Market Association acts as the coordinator for activities conducted on behalf of its members and other participants in the London Bullion Market, and it is the principal point of contact between the market and its regulators.
  • LCH

  • The London Clearing House
  • LEACHING

  • The extraction of a soluble metallic compound from ore by dissolving the metals in a solvent.
  • LENDING

  • One form of carry. In this case the simultaneous selling of metal for a near dated prompt and the buying of that metal for a later dated prompt. In effect the party is lending the metal for the period
  • LEVERAGE

  • The potential to magnify profits or losses by incurring exposure to large positions from a small investment outlay.
  • LIBOR

  • London Inter Bank Offer Rate
  • LIFFE

  • London International Financial Futures Exchange.
  • LIMIT ORDER

  • An order that has restrictions placed on it. The customer specifies a price and the order can only be executed if the market moves to or betters that price.
  • LIQUIDITY

  • The market tradability of an asset. A highly liquid market has a large number of buyers and sellers, or lenders, making it easy to enter or exit.
  • LME

  • London Metal Exchange
  • LONG

  • A long position means the purchase and retention of an asset
  • LONG STRADDLE

  • The purchase of call and put options with the same exercise price and expiry date. The investor expects a significant increase in volatility; direction of prices is not of prime importance.
  • LOOKBACK OPTION

  • A history dependent option where the settlement at maturity is reliant not only on whether the option is in-the-money at expiry, but also on the maximum or minimum price achieved by the underlying asset during at least some part of the option life.
  • LOT    

  • Commonly used word for a standard futures contract.
  • LSE

  • London Stock Exchange

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