Skip Navigation

Jargon Buster - L


Is the amount of participation that an investor will receive in the performance of the Underlying. For example, a leverage of 150% means that investors will receive 150% of the Underlying’s performance. Please also see ‘Gearing'.

Liquidity Risk

Whilst most structured products do offer investors the option to sell back their investment early, this may only be on certain dates and is not guaranteed. The risk that you are unable to sell back your investment when you need to is called ‘liquidity risk’.


The London Stock Exchange.

We've put together a glossary of terminology associated with structured products.

While these are standard definitions, it's important that you read the relevant product literature before investing, as providers might use a slightly different definition to those detailed here.

Thank you. Your details have been added to our mailing list.

Representing the collective interests of leading structured product manufacturers in the UK

The UK Structured Products Association ('UKSPA') is a membership organisation established by the leading manufacturers of structured products in the UK. UKSPA provides a unified voice for its members, working with regulators, financial advisers and other trade bodies. It serves a number of important functions, including engaging with regulators, developing best practice guidelines, educating the investment community and providing a useful source of information for manufacturers, financial advisers and retail investors within the UK.

This site uses cookies to improve your user experience. By entering this site you are consenting to our use of cookies.

Click below to accept and enter the site. I am a: