Last day payout chart

A last day payout chart graphically displays the value of the selected option...

Leg

A leg is an option in a spread or a strategy.

Libor

LIBOR (London Interbank Offered Rate) is a reference rate provided by the BBA (British Banker's Association).

Liquid market

A market is said to be liquid when it has high liquidity...

Liquidity

The term liquidity relates to the ease in which something can be converted into cash in the marketplace.

Loan

A loan is an instrument whereby the borrower receives an amount of money (i.e., the principal) from the lender...

Loan related KIKO

The loan KIKO lets the customer hedge a loan related foreign exchange exposure by converting that exposure to a different currency.

Local capped Asian basket

A local capped Asian basket option is similar to a regular Asian basket with the addition of a local (or individual) floor and cap that lets you set a minimum and maximum limit to each of the normalized asset values on each fixing date.

Long

If you are long, you have bought a trade to establish a market position and have not yet closed out this position through an offsetting trade.

Lookback option

A lookback option is a path dependent option.

Lot

In the commodities market, a lot is a predefined unit of a commodity of uniform grade.