Glossary

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Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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  • ECB
    ECB stands for the European Central Bank, which is the central bank for the euro and Euro Area. The headquarters are in Frankfurt, Germany.

    It administers monetary policy within the Eurozone, which comprises 19 member states of the European Union, one of the world’s largest trading blocs.
  • Economic indicator
    A government-issued statistic that indicates current economic growth and stability. Common indicators include employment rates, gross domestic product (GDP), inflation, retail sales, etc.
  • End of day order (EOD)
    An end of day order (EOD) is an instruction to your broker to keep a buy or sell order open only until the end of a trading day. An EOD, also known as a day order, can be to open a new position or close an existing one, but either way it will close on the same business day it’s placed, usually by way of a stop or limit.
  • EST
    EST stands for Eastern Standard Time. It is five hours behind Coordinated Universal Time (UTC) and Greenwich Mean Time (GMT). The EST time zone gets used during standard time in North America, Central America, and The Caribbean. EST is often called Eastern Time Zone.
  • ESTR
    The Euro Short-Term Rate (ESTR) is the interest rate benchmark for overnight borrowing costs throughout the euro area. It’s calculated and published by the European Central Bank (ECB) as a replacement for the Euro Overnight Index Average (EONIA) and the Euro Interbank Offered Rate (EURIBOR).
  • ESTX50
    The ESTX50 is a common abbreviation for the Euro Stoxx 50, which lists the top 50 most highly-capitalised stocks on the EURO STOXX – another European index. It’s weighted based on each company’s free float market capitalisation.
  • EURIBOR
    EURIBOR is an interest rate benchmark for the eurozone, standing for Euro Interbank Offered Rate. It is calculated using the average rates that eurozone banks offer each other on unsecured short-term loans of various maturities. EURIBOR represents the rate at which banks will lend capital to each other for short periods (short in this instance meaning less than one year). The rates quoted by various different banks are averaged together to make the benchmark, which is quoted daily. Like other IBORs, EURIBOR rates are used in various financial products – including OTC derivatives.
  • Euro
    The Euro is the single European currency that replaced national monetary systems for 19 member states of the European Union. In forex markets, the Euro is abbreviated to EUR, and is the second-most traded currency after the US Dollar.
  • European Monetary Union (EMU)
    The European Economic and Monetary Union (EMU) was introduced when the founding members of the European Union (EU) set up a centralised economic system for the supranational body.
  • European session
    The European session is the second session of the forex trading day. While the FX market is open 24 hours a day, it’s split into three major sessions – Asian, European and North American, also known as Tokyo, London and New York.
  • Eurozone labour cost index
    Measures the annualised rate of inflation in the compensation and benefits paid to civilian workers and is seen as a primary driver of overall inflation.
  • Eurozone Organisation for Economic Co-Operation and Development (OECD) leading indicator
    A monthly index produced by the OECD. It measures overall economic health by combining ten leading indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices and interest rate spreads.
  • Ex-dividend
    A share bought in which the buyer forgoes the right to receive the next dividend and instead it is given to the seller.
  • Expiration date and options values

    Expiration dates vary depending on the derivative.

    The expiration date for US stock options is usually the third Friday of the contract month or the month when the contract expires. If the Friday falls on a holiday, the expiration date is the Thursday immediately before the third Friday.

    When an options or futures contract passes its expiration date, it’s invalidated. The last day to trade equity options is the Friday before expiry, so traders must decide what to do on this final trading day.

    Specific options have automatic exercise provisions, and they get automatically exercised if they are in the money at the time of expiry. If a trader doesn’t want the option exercised, they must close out or roll the position by the last trading day.

    Index options will expire on the third Friday of the month, which is also the last trading day for American index options. For European index options, the final trading is usually the day before expiration.

  • Exporter
    An exporter is a person, company, or country, that sends goods or services to a counterparty in another country. Exporting is a global trade function whereby goods produced in one country get moved to another country to trade or sell.
  • Extended
    A market that is thought to have travelled too far, too fast.