Terms starting with L
28 terms · page 2 of 2
Loss Aversion
Market Psychology & Behavioural Finance
ratio (x, times)
The tendency to feel the pain of a loss more strongly than the pleasure of an equivalent gain.
Test: the compensation demanded to accept a possible loss exceeds the loss's size, typically by a factor near two
Lot Size
Derivatives, Futures & Options
shares
The fixed number of units of the underlying that one derivative contract represents.
Contract Value = Lot Size x Price of the Underlying
Lower Circuit
Orders, Execution & Market Structure
₹
The state in which a security is trading at the bottom of its permitted price band, with sell orders pending and no buyers.
Lower Circuit Price = Previous Close x (1 - Band %)
Lump Sum Investment
Funds, ETFs & Index Investing
₹
Investing an entire amount at one time rather than spreading it across instalments.
Future Value = Amount x (1 + Annual Return) raised to the number of years