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Landed Price
The actual delivered cost of oil to a refiner, taking
into account all costs from production or purchase to the
refinery.
Last Trading Day
The final trading day for a particular delivery
month futures contract or options contract. Any futures
contracts left open following this session must be settled
by delivery.
Lifting
Refers to tankers and barges loading cargoes of
petroleum at a terminal or transshipment point.
Light Crude
Crude oil with a low specific gravity and high API
gravity due to the presence of a high proportion of light
hydrocarbon fractions.
Light Ends
The more volatile products of petroleum
refining, such as butane, propane, and ethane.
Limit
The maximum daily allowable amount a futures
price may advance or decline in any one day’s trading
session. Limits are also placed on the number of positions
a participant may hold in the market.
Limit Order
A contingent order for an options or futures trade
specifying a certain maximum (or minimum) price,
beyond which the order (buy or sell) is not to be
executed.
Liquefied Natural Gas (LNG)
Natural gas which has been made liquid by reducing
its temperature to minus 258o Fahrenheit at atmospheric
pressure. Its volume is 1/600 of gas in vapor form.
Liquefied Petroleum Gas (LPG)
Propane, butane, or propane-butane mixtures
derived from crude oil refining or natural gas fractionation.
For convenience of transportation, these gases are
liquefied through pressurization.
Liquidation
The closing out of futures and options
positions.
Liquidity
A market is said to be “liquid” when it has a high
level of trading activity and open interest.
Liquid Market
A market characterized by the ability to buy and
sell with relative ease.
Long
1) The market position of a futures contract buyer
whose purchase obligates him to accept delivery unless
he liquidates his contract with an offsetting sale.
2) One
who has bought a futures contract to establish a market
position.
3) In the options market, position of the buyer
of a call or put options contract. Opposite of
short.
Long Hedge
Purchase of futures against the future market
price purchase or fixed price forward sale of a cash commodity
to protect against price increases.
Lont-the-Basis
A person or firm that owns the spot commodity
and hedges with a sale of futures is said to be long-the-basis.
Lot
A specific quantity of a futures commodity of uniform
grade; the standard contract unit of trading.
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