Financial glossary

L

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.

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding.