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Lifetime high and lows

Highest and lowest traded prices of a futures or options contract, for the full period of its trading life to date.

 

LIFFE Market Feed (LMF2)

An integrated data feed which provides direct access to LIFFE's real time price data. It contains a comprehensive range of data on all LIFFE products; including quotes, trades, volumes, closing/settlement prices, contract details, introduction of new series and open interest.

 

Liquidity

The ability to buy or sell a large number of units of a financial asset in a short period without significantly affecting the price of the instrument.

 

Limit order

An order given to a broker by a customer that specifies a price; the order can be executed only if the market reaches or betters that price.

 

London International Financial Futures and Options Exchange (LIFFE)

LIFFE was originally set up as a financial futures and options exchange, and for ten years offered contracts on interest rates denominated in most of the world’s major currencies. In 1992 LIFFE merged with the London Traded Options Market (LTOM), adding equity options to its product range. In 1996, it merged with the London Commodity Exchange (LCE), and, as a result, a range of soft and agricultural commodity contracts was added to its financial portfolio. In January 2002 LIFFE became part of the Euronext Group.

 

Local

A 'local' is a trader registered to a member of LIFFE. The local trades for his or her own account.

 

London Clearing House (LCH)

The LCH is a Recognised Clearing House under the Financial Services and Markets Act (2000). Its primary role is to act, in relation to its members, as central counterparty for contracts traded on LIFFE, the IPE and the LME. When LCH has registered a trade, it becomes the buyer to every LCH member who sells and the seller to every LCH member who buys, ensuring the financial performance of trades. To protect itself against the risks assumed as central counterparty, LCH establishes margin requirements. See Margining.

 

London Traded Options Market (LTOM)

Formerly exchange-traded options only; merged with LIFFE in 1992 to form a physical exchange for open outcry and automated trading of financial futures and options.

 

Long Gilt future

Futures contract based on a notional UK Gilt of £50,000 nominal value with a 7% coupon and ten to fifteen year maturity.

 

Lots per side

Number of contract lots (standardised contract sizes) traded by the purchaser or the seller in a transaction.