Financial Spread Betting Words: J-N
Last Dealing Day - The final day of dealing in a spread bet before it expires. Be aware that not only can the last dealing day be different for certain spread bets but so can the actual time of expiry.
Leverage - See gearing
LIBOR - London Interbank Offered Rate, the 3 month money rate set at 11.30am every day
Limit Down - The price in certain spread bet markets, notably US ones, where the market cannot trade below that day. For example if US 10 year bond notes have a limit of 3 points and closed today at 110, they cannot trade below 107 the following day. More information on Limit Up - click here
Limit Up - The reverse case of Limit Down. Using the same example as above, the market on T-Note futures would not be allowed to trade above 113. More information on Limit Down - click here
Limit Order - An order to buy or to sell a spread bet at a specific price. Example: "Buy £5 of the March FTSE at 4200." This would be placed when FTSE was trading above 4200, and the prospective buyer is hoping for a better price than where the market is then trading. There is obviously the possibility that the order will never get filled. Limit orders can also be used in the same fashion for selling above the market. Further information on Limit Orders - click here
Liquidity or liquid - The amount of business conducted in a spread bet market. Where possible you always want to trade products that have good liquidity primarily because they are cheaper to trade due to tight bid-offer spreads. An example of a liquid stock would be any FTSE 100 company, while most stocks traded on the PLUS market are deemed very illiquid.
Long Bond - Another name for the US 30 year bond. Click here for more information on spread betting bonds
Long Position - Having bought, but not yet sold. A long position is entered with the aim of profiting from an increase in price. See also a Short Position
Long trade - A position that will make money in a rising market. As in 'I've gone long the FTSE'
Maintenance margin - Spread bets are margined products and therefore all trades are credited/debited in real time as the trade moves in either direction. Maintenance margin can therefore be positive or negative. Contrast this to the cash stockmarket where profits/losses are only realised when the stock is physically sold. Click here for more information on Margin
Margin - The amount of money needed to deposit with your spread betting broker in order to fund a position. With margined products only a percentage of the nominal value has to be lodged in cash, normally between 5-20%. Click here for more information on Margin
Margin Call - A telephone call from your spread betting broker asking for money to be deposited usually because of adverse price movements. A solid and logical rule throughout all of trading is 'never pay a margin call', instead liquidate your positions and take the losses on the chin. Click here for more information on Margin
Market Order - An order to buy or sell a spread bet at the current bid or offer. Click here for more information on the different types of spread betting orders
Mark to market - Adjust the value of an asset or liability to reflect the current market price. In spread betting this is done in real-time. For example if you buy £1 of the FTSE 100 spread bet at 4,300 first thing in the morning, and by 2pm it is trading at 4,300 you will have deposited in your account £100 in marked-to-marked profits although the position has not yet been closed. Vice-versa for marked-to-market losses. More information on this topic in the Margin section - click here
Mib 30 - Italian Stockmarket index. Further information
MOC order - 'Market-on-close'. An order to cover a spread bet (long or short) on close. If a spread betting client was short the Nasdaq 100, by placing a buy MOC order this position would be covered on the close. Click here for more information on the different types of spread betting orders
Noise - Normal everyday market movement, up and down without really going anywhere. The ebb and flow of everyday movement. Notional Trading Requirement (NTR) - See initial margin
Notional Trading Requirement (NTR) - See initial margin
