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Investing, Financial, Trading and Crypto Terms - Dictionary (L)

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Investing/Finance/Trading/Crypto Dictionary
Large cap: Large cap refers to a company with a market capitalization of more than $10 billion. Large cap companies are typically well-established, have a long operating history, and are considered to be less risky than small cap companies.
Leverage: Leverage refers to the use of borrowed money to increase the potential return of an investment. In trading, leverage is often used to trade a larger position than what the trader could afford with their own capital. It can amplify the potential gains, but also the potential losses.
Leveraged ETFs: Leveraged ETFs are exchange-traded funds (ETFs) that use financial derivatives and debt to amplify the returns of an underlying index or benchmark. These funds are designed to provide returns that are multiples of the returns of the underlying index or benchmark, such as 2x or 3x the return. However, because of the use of leverage, leveraged ETFs are considered to be riskier than traditional ETFs.
Leveraged products: Leveraged products are financial products, such as ETFs, futures, or options, that use leverage to amplify the returns of an underlying asset. These products are intended to provide higher returns than the underlying asset, but also come with higher risk.
Liabilities: Liabilities are obligations that a company or individual owes to others. They include things like loans, bonds, and accounts payable. Liabilities are typically divided into short-term (due within one year) and long-term (due in more than one year).
Limit order: A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.
Limit up / limit down: Limit up and limit down refer to the rules that some exchanges have in place to halt trading of a security if the price of the security moves too far in one direction. This is done to prevent excessive volatility and to protect investors from extreme price changes.
Liquidity: Liquidity refers to the ease with which an asset can be bought or sold without affecting its market price. In general, assets that are highly liquid can be bought and sold quickly and at prices that are close to their fair value. The most liquid assets are cash and cash equivalents. Stocks, bonds, currencies, and commodities are considered less liquid. A company or a market with high liquidity is considered less risky and is more attractive to investors.
London Interbank Offered Rate (LIBOR): The London Interbank Offered Rate (LIBOR) is the average interest rate at which a select group of large banks borrow funds from other banks in the London wholesale money market. It is used as a benchmark for short-term interest rates around the world, and it is also used as a reference rate for financial products such as adjustable-rate mortgages, credit cards, and student loans.
Long position: A long position refers to an investment in which the investor buys an asset with the expectation that its value will increase. For example, buying a stock or a commodity with the expectation that its price will go up.
Lot: A lot refers to a unit of trading in a financial market. It can refer to a specific number of shares of stock, a specific quantity of a commodity, or a specific amount of a currency. The size of a lot can vary depending on the market and the type of asset being traded.