| Last Trading Day |
The final day of trading for the maturing delivery month, or otherwise known as the nearby contract month. |
| LDC |
Local distribution company. In layman’s terms – the local gas company. Most Natural Gas utility companies fall under this description. |
| Light Crude Oil |
Crude oil with a high API gravity (low specific gravity). |
| Limit |
The maximum amount a futures price may advance or decline in any one trading day. |
| Limit Order |
An order to buy or sell at a specified price. |
| Liquidation |
(1.) The closing out a long position. (2.) The closing out of any position. |
| Liquidity (Liquid Market) |
A market with a level of trading high enough to allow the buying and selling of contracts with minimal price changes. A highly liquid market is also called a one tick or one point market signifying that trades occur at the minimum possible spread between bid and offer. |
| Liquified Natural Gas (LNG) |
Natural gas which has been liquified for non-pipeline transportation and for storage. |
| Liquified Petroleum Gas (LPG) |
Propane, butane, or mixtures of propane and butane that are liquefied for transportation and storage. |
| Local |
Common term for a floor trader; one who trades on the floor of an exchange for his own account and risk. |
| Long (Position) |
(1.) A market position which obligates the holder to take delivery. (2.) One who has bought a futures contract, options, or any other financial instrument. (3.) The buyer or buy side of a contract. |
| Lot |
The standard unit of trading for a futures contract. One contract equals one lot. The term dates back to the grain markets which traded in “carlots” (railroad cars). |
