Forex Glossary - L -

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Lagging Indicator: An economic indicator that tends to change after the overall economy has changed.

Limit Order: An order to execute a transaction at a specified price considered as the limit. Note that if it were a buy limit this would be the limit or lower and vice versa for a sell limit.

Leading Indicators: An economic indicator that changes before the economy starts to follow.

Leverage: The use of a small amount of any financial instrument (e.g. cash) to control a bigger amount thus increasing potential return on investment.

Line Chart: The line connecting single prices for each of the time period selected.

LIBOR: London Interbank Offered Rate, rate charged by one bank to the other when lending money.

Long-Position: This is referred to when a currency is bought. Example buying Eur/Usd means going long on Euro and going short on dollar.