| Earnings
Per Share:
|
After-tax
profits divided by the number of outstanding shares. This is one of
the most important fundamental measures of a stock's prospects for future
price gains. |
| Electronic
Order: |
An
order placed electronically (without the use of a broker) either via
the Internet or an electronic trading system. |
| Electronic
Trading Systems: |
Systems
that allow participating exchanges to list their products for trading
after the close of the exchange's open outcry trading hours (i.e., Chicago
Board of Trade's Project A, Chicago Mercantile Exchange's GLOBEX and
New York Mercantile Exchange's ACCESS.) |
| Equity: |
For
example, the value of a futures trading account if all open positions
were offset at the current market price. |
| European
Style Option:
|
A
call or put option that can only be exercised at the expiration of the
contract. |
| Exchange: |
See
Contract Market. |
| 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. |
| Expansion
Breakout/Breakdown:
|
A
pattern from Jeff Cooper's book "Hit and Run Trading" that
occurs when a new (two-month) high or low is made on a price bar with
the largest daily range of the last nine days. See also "Breakout."
|
| Exercise:
|
This
is the actual fulfillment of the terms of the options contract.
The specified number of units of the underlying are bought or
sold at the price predetermined in the option contract.
|
| Exercise
Price : |
See Strike Price. |
| Ex-Dividend:
|
Means
without dividends.
Stocks purchased on the ex-dividend date are purchased without
rights to the recent dividend.
Owners of the stock are entitled to all future dividends.
|
| Exercise:
|
The
demand of the owner of a call option that the contract size number of
units of an underlying asset be delivered to him at the exercise price.
The demand by the owner of a put option contract that the contract
size number of units of an underlying asset be bought from him at the
exercise price. |
| Exercise
Price:
|
The
price at which the owner of a call option contract can buy an underlying
asset.
The price at which the owner of a put option contract can sell
an underlying asset. |
| Expiration:
|
This
is the date the option contract becomes void unless previously exercised.
All stock and index option contracts expire on the Saturday following
the third Friday of the expiration month. |
| Extrinsic
Value:
|
See
Time Value. |