Market terms Glossary

Simple definitions to international markets trading terminology.


Slang for the Canadian dollar.


A market position where the Client has bought a currency they previously did not own. For example: long Dollars.


The ability of a market to accept large transactions without having any major impact on the interest rates.


Any transaction that offsets or closes out a previously established position.

Limited Convertibility

When residents of a country are prohibited from buying other currencies even though non-residents may be completely free to buy or sell the national currency and the foreign institutional investors also have the liberty to buy and sell shares on the stock exchange of that country.

Limit Order – Reserved Day Trading Deal

See Pending Order.


In terms of foreign exchange, the obligation to deliver to a counter party an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction.

Leading Indicators

Statistics that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.

Lay Off

To carry out a transaction in the market to offset a previous transaction and return to a square position.


London International Financial Futures Exchange.

LIBOR (London Inter Bank Offer Rate)

British Bankers' Association average of interbank offered rates for dollar deposits in the London market based on quotations at 16 major banks. Effective rate for contracts entered into two days from date appearing.


Less developed countries, often used with respect to secondary debt market.