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