The rate charged by one bank to another for lending money.
Life of contract
The period between the beginning of trading in a particular future and the expiration of trading.
LIMEAN
The average of the LIBOR and LIBID rates.
Limit
The maximum price fluctuation permitted by an exchange from the previous session’s settlement price for a given contract.
Limit down
The maximum price decline from the previous trading day’s settlement price permitted in one trading session.
Limit move
A price that has advanced or declined the limit permitted during one trading session.
Limit order
An order to buy or sell a specified amount of a security at a specified price or better.
Limit up
The maximum price advance from the previous trading day’s settlement price permitted in one trading session.
Liquid
A characteristic of a security or commodity market with enough units outstanding to allow large transactions without a substantial change in price. Institutional investors are inclined to seek out liquid investments so that their trading activity will not influence the market price.
Liquid stocks
The London Stock Exchange has classified its listed shares and USM-company shares that have a normal market size greater than 1,000 as liquid stocks.
