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| Ladder | If the price of the underlying assets rises above a certain threshold level during the product term, investors are then guaranteed a minimum payout at maturity, even if the price subsequently falls. There may be a number of such steps. Investors can therefore lock in the increase in value. |
| Ladder Option | A ladder option is a type of call option that locks in the return as the underlying rises. It is used to create structured products that provide a lock-in of the return as the underlying rises.
For example, a product might offer 100% participation in any rise in the FTSE100 index but with the additional feature that each 10% rise is locked-in. This means that even if the index subsequently fell back, the minimum return would be increased by the highest level that had been locked-in during the investment term. |
| Launch Date | Date when the product was first available for investment (Continuous products). |
| Leverage | Products that provide leverage long or leverage short position in an underlying, usually including a stop-loss feature. These products are typically known as turbos. |
| Leverage Long with stop loss | The product provides a return equivalent to a leveraged long position in an underlying. If the underlying falls to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position. |
| Leverage Short with stop loss | The product provides a return equivalent to a leveraged short position in an underlying. If the underlying rises to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position. |
| Leverage with Stop Loss | The product provides a return equivalent to a leveraged long or short position in an underlying. If the underlying rises (leverage short) or falls (leverage long) to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position. |
| LIBOR | LIBOR stands for the London Interbank Offered Rate. It is the benchmark interest rate at which the wholesale banks lend money to each other in the money markets. It is set each day at 11am London Time and there are different rates for different maturity loans i.e. one month, three month, etc. |
| Life Bond | A Life Bond is a term used to describe a Life Assurance policy that provides a fixed or variable return based on the performance of underlying funds (unit linked) or based on a Life Company guarantee (index linked).
The returns on an onshore, UK based, Life Bond are net of basic rate tax for a UK investor. |
| Life Insurance | Life insurance contract |
| Listed | The note is listed on a stock exchange and can be bought/sold there. |
| Local cap | The term local cap is used to describe a feature of a cliquet product. It is the maximum return in each period of the product that is used in calculating the overall return. |
| Local floor | The term local floor is used to describe a feature of a cliquet product. It is the minimum return in each period of the product that is used in calculating the overall return. |
| Lokata | Deposit in Poland |
| Long | A “long” position is the term used to describe a situation where one is holding i.e. one has purchased, a quantity of some financial asset i.e. a share, bond or derivative.
For example, if one is “long of £1m of HSBC options”, it means one is the owner of £1m of HSBC options. |