Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used in the markets. All trading glossary is presented in our glossary in alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling at you now will become crystal clear once you read its definition in our glossary below.

All | # 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

There are currently 6 names in this directory beginning with the letter E.

Earnings Per Share (EPS)

This is a metric is a company’s earnings figures. EPS are calculated by dividing the total amount of profit generated in a certain period by the number of the company’s shares listed on the stock market.

ECB

European Central Bank

EDSP

This is an abbreviation for Exchange Delivery Settlement Price. It refers to the price at which exchange-traded derivative contracts are settled. Stock markets use EDSP to calculate the amount that each party to an options or futures contract owes at the time of that contract’s expiry.

Exchange

It is an open, organized marketplace for commodities, stocks, securities, derivatives, and other financial instruments. The terms exchange and market are used interchangeably.

Expert Advisor

It’s an automated set of detailed programming instructions on how to open, modify and close trading positions without human intervention.

Expiry Date

This is the point at which a trading position automatically closes.