E

Trading terms glossary
A – B – C – D – E – F – G – H – I – J – K – L – M – N – O – P – Q – R – S – T – U – V – W – X – Y – Z

–

E

Earnings per share
Earnings per share (EPS) is the net profit of a company, divided by the number of outstanding shares. A tool commonly used to measure a company’s profitability. 

EBITDA
EBITDA (earnings before interest, taxes, depreciation, and amortization) is a way of evaluating a company’s performance. An alternative measure to net income. 

ECB
ECB stands for the European Central Bank, which is the central bank for the eurozone.

Equity
Equity can have several different meanings in the context of trading, however it usually refers to the ownership of an asset without any debt.

Equity options
Equity options are contracts affording the owner the right, not the obligation, to trade to buy or sell shares of the underlying security at a specified price before the expiration date. 

ETF
ETF stands for Exchange Traded Fund, which is a type of fund that is traded on a stock exchange.

Learn more about ETF‘s

ETP
ETP stands for Exchange Traded Products, which are types of financial products that are publicly traded on a stock exchange.

Eurobond
A eurobond is a debt instrument denominated in a currency other than the home currency (the market or country where it was issued). Sometimes referred to as external bonds. 

Eurodollar Bonds
A type of eurobond, eurodollar bonds are denominated by the US dollar, but are sold outside of the US. Can be sold worldwide.

Exotics
Exotics refer to currencies that are less actively traded.

Exchange
An open marketplace where financial instruments are traded. An exchange can also be described as ‘the market.’

Execution
The completion of a buy or sell order from a trader, actioned by a broker. 

Expiry date
The day when a trading position automatically closes.

Expiry (of a futures contract)
The expiry date of a futures contract is the last day you can trade that contract. 

Exposure
Exposure can mean a variety of things in trading. It can either be the amount of money invested in a certain asset, or the total market value of an investor’s open trades. Or it can refer to the total amount of possible risk at any given time.