Terms starting with L

Last Look

A practice where a liquidity provider retains the right to reject or re-quote an order after receiving it, introducing a brief delay before execution.

Latency

The time delay between submitting a trade order and its execution, typically measured in milliseconds.

Liquidity Aggregation

The process of pooling quotes and depth from multiple liquidity providers to create a more competitive and resilient pricing environment.

Liquidity Provider

A financial institution (bank, prime broker, or ECN) that supplies buy and sell quotes, enabling brokers to fill client orders.

Also: LP

Lot Size

The standardized quantity of a financial instrument in a single trade, with a standard lot in FX being 100,000 units of the base currency.

Also: Standard Lot, Mini Lot, Micro Lot