LAST TRADING DAY

The final day under an Exchange's rules during which trading may take place in a particular delivery futures month. Futures contracts outstanding at the end of the last trading day must be settled by delivery of physicals or by cash settlement. (See cash settlement).

LIMIT

The definite price stated by a customer to a broker restricting the execution of an order to buy for not more than, or to sell for not less than, the stated price.

LIMIT ORDER

An order given to a broker by a customer which has some restriction upon its execution, such as price or time.

LIQUIDATION

The sale of a previously held long position, or the re-purchase of an earlier established short position. The former is also called long liquidation, while the latter is referred to as short covering.

LIQUID MARKET

A market where selling and buying can be accomplished with ease because of high volume.

LOCAL

A Member of the Exchange with the authority to deal on his/her own account or Full Members but not on behalf of clients.

LONG

A trader who has bought futures contracts or who owns actuals which are unhedged. "Net Long" refers to a trader whose total purchases exceed the total short sales in the trader's open futures contracts.

LOT

Usually a specific quantity of a standard grade of a commodity, or a unit of trading equivalent to one futures contract.

LOTTING FACTOR

The average number of lots traded per deal (that is, volume divided by deals).