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Financial glossary

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Limit order

A limit order is an order to buy (sell) a given asset at a maximum (minimum) price. While enabling investors to control their executions, it limits their ability to fulfil orders. A limit order is opposed to a market order, where execution is achieved immediately in the market whatever the price.

Liquidity risk

The liquidity risk refers to the risk of selling (buying) a security at a price significantly lower (higher) than its intrinsic value due to a lack of market participants trading it.

Loan

A loan is a debt instrument under which the borrower owes the lenders (generally banks) a debt and is obliged to pay them periodic interest payments and to repay the principal by a given maturity date. Unlike bonds, loans are generally non-tradeable.