Dictionary
- Leverage
- The degree to which an investor or business is utilizing borrowed money. The credit provided by the bank for margin trading.
- Leverage Ratio
- The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.
- LIBOR
- London Inter-Bank Offer Rate. The rate of interest that major international banks in London charge each other for borrowings.
- Limit
- The customer’s instruction to close a profitable position at a specific price.
- Limit Order
- An order that instructs a broker to buy or sell a specified amount of a security at a specified price or at a better price.