Terms starting with L

7 terms.

• LeverageRisk & money managementLeverage in trading lets you control a position larger than your own money by putting up a small deposit, called margin, while the broker covers the rest. Profit and loss are counted on the full position, not on the deposit.
• Leverage limitBrokers, accounts & prop firmsA leverage limit is the highest ratio of position size to your own money that a broker, regulator or prop firm allows on an account. At a limit of 1:30, for example, each $1 of equity can control at most $30 of market exposure.
• Limit orderExpert Advisors & automationA limit order is an instruction to buy or sell only at a price you choose or better. A buy limit sits below the current price, a sell limit sits above it, and it fills only if the market comes to that price.
• LiquidityPrice action & SMCLiquidity is how easily you can buy or sell without moving the price. On a chart, traders also use the word for the clusters of stop-loss and pending orders that sit above swing highs and below swing lows.
• london session openBreakouts & sessionsThe London session open is the hour London's forex desks start trading: 08:00 London time, which is 07:00 UTC in summer and 08:00 UTC in winter. Volume and price movement usually pick up from this point.
• Lot sizeRisk & money managementLot size is the volume of a trade, counted in lots. In forex, one standard lot is 100,000 units of the base currency, and the lot size you choose sets how much money each pip of price movement is worth.
• low volatilityVolatility & rangesLow volatility means price is moving in small steps: candles are short, the range is narrow, and readings such as the Average True Range sit below their usual level for that market. It describes how far price moves, not which direction it goes.