Easing Modest decline in price.
Reflects the impact of foreign exchange changes on the
future competitive position of a company in the sense of
the impact it can have on the future cash flows of the
Economic Indicator A statistic which indicates current economic growth rates
and trends such as retail sales and employment.
ECU - European Currency
A basket of the member currencies. As a composite unit,
the ECU consists of all the European Community currencies,
which are individually weighted. It was created by the
European Monetary System with the eventual goal of
replacing the individual European member currencies.
Effective Exchange Rate An attempt to summarize the effects on a country's trade
balance of its currency's changes against other currencies.
EFT Electronic Funds Transfer.
Either Way Market In the Euro Interbank deposit market where both bid and
offer rates for a particular period are the same.
EMS European Monetary System.
EMU European Monetary Union.
Indicates that both the spot and forward maturity, or two
forward maturities in a swap transaction, fall due on the
last business day of appropriate calendar months.
EOE European Options Exchange.
The change in the price of an option associated with a 1%
change in implied volatility (technically the first derivative
of the option price with respect to volatility). Also referred
to as eta, vega, omega and kappa.
ERM Exchange Rate Mechanism.
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Euro Clear A computerized settlement and depository system for safe
custody, delivery of, and payment for Eurobonds.
A long-term loan issued in a currency other than that of the
country or market in which it is issued. Interest is paid
without the deduction of tax.
Eurocurrency A currency domiciled outside its country of origin normally
held by non-residents.
Eurodollars US dollars deposited in a bank (US or non US) located
outside the USA.
Swiss Franc (formerly also Belgian Francs) traded on the
Eurocurrency market. Normally Swiss Francs are the more
Euromark Deutschmarks traded on the Eurocurrency market.
European Option An option that can be exercised only on its expiration date
rather than before that date.
European Union The group formerly known as the European Community.
A system of controlling inflows and outflows of foreign
exchange. Exchange Control devices include licensing
multiple currencies, quotas, auctions, limits, levies and
Exchange Rate Risk The potential loss that could be incurred from an adverse
movement in exchange rates.
Exercise Limit A limit on the number of options contracts a holder may
exercise within a specific period.
The formal notification that the holder of a call (or put)
option wishes to buy (or sell) the underlying security at the
Exercise Price See Strike price.
For a call option, this is the amount by which the strike
price is below the underlying investment; for a put option,
it is the amount by which the strike price is above the
Exotic A less broadly traded currency.
(1) Options - the last date after which the option can no
longer be exercised. (2) Bonds - the date on which a bond
Expiration Month The month in which an option expires.
Expiry Date The last day on which the holder of an option can exercise
his right to buy or sell the underlying security.
Expiry Date The last date on which an option can be bought or sold.
The total amount of money loaned to a borrower or
country. Banks set rules to prevent overexposure to any
single borrower. In trading operations, it is the potential for
running a profit or loss from fluctuations in market prices.