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Leverage (Margin)
The ability to borrow money to fund trading/investing activity. The amount that can be borrowed varies between brokers, and is quoted as a multiple of maximum position size to deposited funds.
Liability
Generally, a claim on a company's assets. In forex, the obligation to deliver to a counter-party an amount of currency at a specified future date, in connection to a forward or spot transaction.
Liquid Market
When there are plenty of lots of a particular currency being bought and sold every day.
Liquidity
Refers to the ability of an asset/currency to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value.
London Interbank Offered Rate (LIBOR)
Daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London interbank market. It is roughly comparable to the US federal funds rate.
London Interbank Offered Rate (LIBOR)
Daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London interbank market. It is roughly comparable to the US federal funds rate.
London International Financial Futures Exchange (LIFFE)
Association composed of the three largest future exchanges in the UK.
Lot
Standardized quantity in forex, composed of 100,000 units of a particular currency pair.