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Long Call Butterfly

A 3-leg direction-neutral, strategy, requiring low volatility, involving buying a low strike call, selling 2 middle strike calls with the

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LEAPs

Long-term Equity AnticiPation Securities.These are long term stock options with expirations up to 3 years in the future. LEAPs are

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Long

Being long means that you are a buyer of a security.

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Liquidity

The speed and ease with which an asset can be traded. Cash has the most liquidity of all assets whereas

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Limit Order

An order to buy at a set price which is at or below the current price of the security.An order

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LIFFE

London International Financial Futures and Options Exchange.

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Leg in / Leg out

Legging into a spread entails the completion of just one component part of a spread with the intention of completing

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