|
Electronic Communication Network (ECN) |
|
Electronic Communication Newwork consists of ARCA (Archipelago), BTRD (Bloomberg), INCA (Instinet), ISLD (Island), SelectNet (NASD), and REDI (Spear Leads). ECNs work as order matching systems and allow traders to advertise a price better than the current bid or offer. By using ECNs, traders can by-pass the SOES network and can make markets by playing or splitting the spread. |
|
Econometrics |
|
The application of statistical and mathematical methods in the field of economics in testing and quantifying economic theories and the solution of economic problems. |
|
Elasticity |
|
A characteristic of commodities that describes the interaction of the supply, demand and price of the commodity; Demand Elasticity - A commodity is said to be elastic in demand when a price change creates an increase or decrease in consumption; Supply Elasticity The supply of a commodity is said to be elastic when a change in price creates a change in the production of the commodity; Inelasticity of Supply or Demand exists in either of the reverse situations, when either supply or demand is relatively unresponsive to changes in price. |
|
EMS |
|
Abbreviation for European Monetary System, an agreement between member nations of the European Union to maintain an alignment between the exchange rates of their respective currencies. |
|
Equity |
|
The dollar value of a futures trading account if all open positions were offset at the going market price. |
|
ERM |
|
Exchange Rate Mechanism. |
|
Eurocurrency |
|
CDs, bonds, deposits, or any capital market instrument issued outside of the national boundaries of the currency in which the instrument is denominated, i.e., Euro-Swiss francs, Euro-Deutsche marks. See Also Eurodollars, Eurodollar Bonds, Eurodollar CD. |
|
Eurodollar Bonds |
|
Bonds issued in Europe by corporate or governmental interests outside the boundary of the national capital market denominated in dollars. |
|
Eurodollar CD |
|
Dollar-denominated certificates of deposit issued by a bank outside of the United States, either a foreign bank or U.S. bank subsidiary. |
|
Eurodollars |
|
U.S. dollars on deposit with a bank outside of the United States and, consequently, outside the jurisdiction of the United States. The bank could be either a foreign bank or a subsidiary of a U.S. bank. |
|
Exchange For Physicals (EFP) |
|
A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as Against Actuals or Versus Cash. |
|
Exchange Rate Risk |
|
The potential loss that could be incurred from a movement in exchange rates. |
|
Exercise |
|
The action taken by the holder of a call option if he wishes to purchase the underlying futures contract or by the holder of a put option if he wishes to sell the underlying futures contract. |
|
Expiration Date |
|
The last date on which an option may be exercised. Although options expire on a specified date during the month prior to the named month, an option on a November futures contract, for example, is referred to as a November option since its exercise would lead to the creation of a November futures position. |
|
Earnings |
|
Income after a company's taxes and all other expenses have been paid. Also called profit or net income. |
|
Earnings Per Share |
|
Calculated by dividing the number of outstanding shares into earnings.
|
|
Economic Indicators |
|
Key statistics used to analyze business conditions and to make forecasts.
|
|
Elliot Wave Theory |
|
Originally published by Ralph Nelson Elliot in 1939, it is a pattern-recognition technique based on the thesis that stock markets follow a pattern or rhythm of five waves up and three waves down to form a complete cycle of eight waves. The down waves are referred to as "correction" waves. |
|
Emerging Markets |
|
Financial markets in nations that are developing market-based economies and have become popular with U.S. investors, such as China and Peru.
|
|
Exchange |
|
A centralized place for trading securities and commodities, usually involving an auction process.
|