LAST (PRICE): This is the closing price of a stock or option that results in the last transaction for a trading session.

LAST TRADING DAY: The final business day scheduled for a specific options expiration date during which, an option can be traded. The last trading day for equity options is usually the third Friday of the expiration month. Please note:  If the third Friday of that month is an exchange holiday, the last trading day will then be the Thursday prior to the third Friday.

LEAPS are call or put options that are publicly traded contracts with expiration dates that are longer than one year. These LEAPS function exactly like any other, shorter-term exchange-traded option. LEG(S) (LEGGING):

LEG(S) (LEGGING): This is a term describing one order entry technique used by brokers involving an option position. An example is when a broker attempts to execute an option straddle order as two separate transactions. The likelihood for profit and loss can occur though the fluctuating of price for that specific option. Note:  Legging is a higher-risk method of establishing a spread position.

LEVERAGE: This is the ability to control a larger sum of money or assets with a smaller sum of money or assets. If prices move favorably for a leveraged position, it increases the potential of profits to be larger than on an unleveraged position. Conversely, if prices move against a leveraged position, the losses can also be larger than on an unleveraged position, but not necessarily with an options position. Leverage can be created through options, futures, margin and other financial instruments. A long option position is leveraged because it "manages" a large number of shares with less money than it would take to maintain a position with the same number of shares.

LIMIT (PRICE) ORDER: This is an order that has a limit on the price, the time of execution, or both. A limit order to buy is usually placed below the current ask price. A Limit order to sell is usually placed above the current bid price. 

LIMIT MOVE: Relating to futures markets, a limit move is the largest amount of change that the price of a commodity futures contract is allowed to go through. It is not possible to trade a futures contract at a price either above or below the futures contract price after a limit move. The limit price is set by the exchange on which the futures contract trades and approved by the Commodity Futures Trading Commission (CFTC). 

LIMITED POWER OF ATTORNEY (LPOA): An authorization giving someone other than the beneficial owner of an account the discretion to perform certain investment decisions regarding functions in a client's account. 

LIMITED TRADING AUTHORIZATION: This authorization, usually provided by a limited power of attorney, grants an agent or broker, the trading privileges in an account. These privileges given through the limited trading authorization allows the agent to act on behalf of an investor, but does not allow for the disbursement of account funds. Which limits the agent or broker to purchases and sales; withdrawals from a clients account are not allowed.

LIQUIDATION: This can be any transaction that offsets or closes out a long or short position regarding a stock or option.

LIQUIDITY RISK: This is the potential that an investor is not able to buy or sell a security when desired stemming from the lack of marketability of an investment. 

LIQUIDITY: The ease with which a stock or option can be bought or sold in the market without significantly affecting their price.

LISTED OPTIONS: A call or put option that is sold on a registered exchange with standardized terms. All listed options have stated exercise prices and expiration dates. 

LISTED STOCK: This is the stock of a corporation that has been accepted for trading purposes, and recognized on a securities exchange. 

LOAN CONSENT AGREEMENT: An agreement permitting a brokerage firm to lend margined securities to other brokers; this agreement is between a brokerage firm and its margin customer. 

LOAN VALUE: This is the maximum amount of money that can be borrowed in a margin account at a brokerage firm using eligible securities as collateral. 

LOCKED LIMIT: Refers to a futures market that has moved its daily maximum amount and no one is willing to buy or sell. 

LONG HEDGE: The strategy of buying puts as protection against the decline in the value of long securities.

LONG MARKET VALUE (LMV): The current market value of stocks held (i.e. having a long position) in a brokerage account, calculated on a daily basis.

LONG: In the context of options, going long is the buying of an options contract. This can also include the buying of a security such as a stock, commodity or currency, with the expectation that the security will rise in value. Note:  Opposite of short.

LOT: This can also be a contract; the consistent quantity of a financial instrument set by an exchange. For exchange-traded securities, a lot might represent the minimum quantity of that security that can be traded.

LOW (L): "L" represents the low price of the session.

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