37 definitions found.
Labor Force Participation Rate (LFPR) is the share of the civilian noninstitutional population age 16 and over that is either employed or actively seeking work. It is calculated as (labor force / population age 16 and ov…
The labor market is the arena where workers offer their labor and employers demand it. It determines employment levels, wages, and other job-related conditions through supply and demand for labor.
Latency is the time delay between when a market event or trading instruction occurs and when it is observed, processed, or executed within a trading system or venue.
Latency arbitrage is a market microstructure phenomenon in which traders seek to profit from ultra-fast information and execution speeds that let them trade on price information before it is fully reflected across all tr…
Layer 1 refers to the base blockchain protocol—the main network on which transactions are settled and smart contracts are executed. It includes the native token and the set of consensus rules that govern security and thr…
A Layer 2 is a scaling solution built on top of a blockchain’s base layer (Layer 1) that processes transactions off the main chain or in aggregated form before final settlement on Layer 1, with the goal of higher through…
Leading Economic Indicators are statistics that tend to move before the overall economy changes, helping to anticipate turning points in economic activity. They are used by economists and policymakers to gauge the direct…
A letter of intent (LOI) is a document that outlines the principal terms and intent of parties in a proposed corporate transaction, such as an acquisition, merger, or strategic partnership, and is usually non-binding exc…
A Letter of Intent (LOI) is a written document that outlines the principal terms of a prospective corporate transaction and signals the parties' intent to negotiate a definitive agreement.
The most granular real-time market data feed from an exchange, providing information on every order in the venue's order book, including a unique order identifier and live updates. It exposes individual orders and their …
Level Two Market Data is a real-time data feed that displays the depth of the order book beyond the best bid and offer, including multiple price levels and their sizes from various market makers and trading venues.
Leverage is the use of borrowed funds or other financial instruments to magnify exposure to an asset relative to the investor's own capital. This magnification increases both potential gains and potential losses, and it …
A leverage ratio is a financial metric that compares a company's debt to its equity or assets, indicating how much debt is used to finance operations.
Leverage risk is the risk that using borrowed funds or other leverage to amplify investment exposure magnifies losses and financing costs, potentially leading to liquidity stress or margin calls.
A leveraged buyout (LBO) is a transaction in which an acquirer uses a large amount of borrowed funds to acquire a company. The debt is secured by the target's assets and cash flows, with equity provided by the buyers and…
A leveraged exchange-traded fund (LETF) is an exchange-traded fund (ETF) that seeks to magnify the daily returns of a specified underlying index or benchmark by a fixed multiple, typically 2x or 3x, through the use of de…
Liabilities are financial obligations arising from past events that require future settlement by transferring assets or providing services. They are present obligations of an entity to creditors or other parties.
An order instruction that participates in the opening auction only if the opening price is within a specified limit; if the opening price is outside that limit, the order is canceled.
A limit order is an instruction to execute a transaction at a specified price or better, rather than at the prevailing market price.
Liquidity in market microstructure is the ease with which a security can be traded in current market conditions, and how little price disruption accompanies the trade. It is commonly observed through metrics like the dep…
Liquidity premium is the extra yield demanded for owning a relatively illiquid fixed-income security, reflecting the cost of trading it quickly at fair value.
A liquidity provider is a market participant that maintains continuous two-sided quotes (bids and asks) for a security or instrument, helping to ensure ongoing liquidity in the market.
Liquidity provision is the activity of supplying two-sided quotes in a market (posting buy and sell limit orders) to provide market depth and reduce price impact for trades.
Liquidity risk in fixed-income markets is the risk that a security cannot be traded quickly without a substantial price concession when trading activity is thin or disrupted.
A liquidity taker is a market participant or order that immediately executes against resting bids or offers in the limit order book, thereby consuming available liquidity.
A load fund is a mutual fund that charges a sales load when shares are purchased or redeemed.
The long end yield is the interest rate on longer-maturity bonds, typically 10 years and longer, as reflected on the Treasury yield curve.
A long position is exposure that benefits from upward moves in the price of the underlying asset; in derivatives, it refers to owning a contract or instrument that provides upside exposure, such as a long futures contrac…
A long-legged doji is a candlestick where the open and close are at or near the same price, but the candle has long upper and lower shadows, signaling strong intraperiod price volatility and market indecision.
Long-term debt is a company's financial obligations that mature in more than one year and are reported on the balance sheet as noncurrent liabilities.
Long-term interest rates are the yields on debt instruments with extended maturities, such as 10-year and 30-year government bonds, representing the cost of borrowing over long horizons.
Long-Term Investments are assets or securities intended to be held for more than one year to support growth, income, or strategic objectives, typically classified as non-current on the balance sheet.
Long-term liabilities are obligations due more than one year after the balance sheet date, such as bonds payable, long-term debt, lease liabilities, and pension obligations.
Loss aversion is the tendency to weigh potential losses more heavily than equivalent gains. This makes losses feel more painful than gains of the same size.
The Low Volatility Anomaly is an empirical finding that stocks with lower realized price volatility tend to deliver higher risk-adjusted returns than more volatile stocks, challenging the traditional view that higher ris…
The low volatility factor is a factor in systematic investing that identifies securities with lower price volatility relative to the broader market.
Low Volatility Investing is an investment style that targets securities with historically lower price volatility relative to the broad market, with the aim of reducing overall portfolio risk.