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LEFT-HAND SIDE
Taking the left hand side of a two way quote i.e. selling the quoted currency.
LEVERAGE
The control of a large notional position through the use of a small amount of capital.
LIMIT ORDER
A Limit Order is a Customer Order to Buy or Sell a specific amount of a Currency Pair at a specific user defined price. A Limit Order does not guarantee execution; rather it guarantees only that if execution occurs, it will be at the stated Limit Price. Note that sometimes the market briefly touches a limit price, only to immediately retreat back away from the limit price level with very little if any volume traded. Under such circumstances the Limit Order may not be executed and the limit order will remain in effect, until that time when the order can be executed or until the Customer cancels the order. A Limit Order specifies that execution should be attempted after the market reaches or goes through a set price level - the limit price. Once issued, the limit order will be held pending until the limit price is reached. Once the market hits or goes through the limit price, the order is triggered and the FXDD dealer attempts to execute the order at the Limit Price.
LIMIT PRICE
The price that the customer specifies when entering a Limit Order.
LIQUID
The condition in the market where there is ample amount of volume to buy or sell.
LIQUIDATION
Any transaction that offsets or closes out a previously established position.
LIQUIDATION LEVEL
The account value level that initiates the liquidation of all the customer's open position at the best price or exchange rate available at that moment. Liquidation occurs when the Account Value is not sufficient to maintain the current open position(s). A customer can prevent liquidation by depositing additional margin into the account, or by closing out existing open position(s).
LIQUIDATION LEVEL EXCESS/DEFICIT
Remaining Account Value before automated liquidation is triggered. The level is equal to the Account ValueLiquidation % * Margin. If loss on open position(s) exceeds this amount, FXDD will automatically liquidate ALL open positions. The level is represented graphically as the top of the brown level in the FXDD Margin Monitor.
LIQUIDITY
The term used to describe the amount of volume available to buy or sell at a point in time.
LONG
The term used to describe a customer who has opened a new position by buying a currency pair.
LOSS IN EXCESS OF THEIR MARGIN DEPOSIT
There exists the opportunity for customers to lose more than the margin that they initially pledge to open and maintain a position.