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TermDefinition
ELX ELX Futures LLC
Efficient Market A market in which new information is immediately available to all investors and potential investors. A market in which all information is instantaneously assimilated and therefore has no distortions.
Electronic Order An order placed electronically (without the use of a broker) either via the Internet or an electronic trading system.
Electronic Trading System 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.)
Elliot Wave Theory (1) A theory named after Ralph Elliot, who contended that the stock market tends to move in discernible and predictable patterns reflecting the basic harmony of nature; or (2) in technical analysis, a charting method based on the belief that all prices act as wavers, rising and falling rhythmically.
Enjoin To command or instruct with authority; to abate, suspend or restrain. For example, one may be "enjoined" or commanded by a court with equitable powers, either to do a specific act or to refrain from doing a certain act.
Equity The dollar value of a futures trading account if all open positions were offset at the going market price.
Escrow Account A special account in which a lawyer or escrow agent deposits money or documents that do not belong to him or his firm.
Estoppel A bar which precludes someone from denying the truth of a fact which has been determined in an official proceeding or by an authoritative body.
Eurodollar U.S. dollar deposits placed with banks outside the U.S. Holders may include individuals, companies, banks and central banks.
European Currency Unit The official unit of account of the European Monetary System. It is a combination or basket of the currencies from the 12 European Community countries: the Deutsche mark, French franc, British pound sterling, Irish pound, Italian lira, Belgian franc, Dutch guilder, Luxembourg franc, Greek drachma, Spanish peseta, Potuguese escudo and the Danish krona.
Even Lot A unit of trading in a commodity established by an exchange to which official price quotations apply.
Ex Parte A Latin term that means "by or for one party." Refers to situations in which only one party (and not the adversary) appears before an adjudicating body. Such meetings are often forbidden.
Ex Pit Transaction A transaction in which the buyer of a cash commodity transfers to the seller a corresponding amount of long futures contracts, or receives from the seller a corresponding amount of short futures, at a price difference mutually agreed upon. In this way, the opposite hedges in futures of both parties are closed out simultaneously. Also called Exchange for Physicals, Against Actuals or Exchange of Futures for Cash.
Exchange See Contract Market.
Exchange Rate The price of one currency stated in terms of another currency.
Exchange Risk Factor The delta value of an option as computed daily by the exchange on which it is traded.
Exchange for Physicals 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 of Futures for Cash A transaction in which the buyer of a cash commodity transfers to the seller a corresponding amount of long futures contracts, or receives from the seller a corresponding amount of short futures, at a price difference mutually agreed upon. In this way, the opposite hedges in futures of both parties are closed out simultaneously. Also called Exchange for Physicals, Against Actuals or Ex-Pit Transactions.
Exempt Foreign Firm Foreign firm that does business with U.S. customers only on foreign exchanges and is exempt from registration under CFTC regulations.
Exercise Exercising a call means that you elect to purchase the underlying futures contract at the option strike price. Exercising a put means that you elect to sell the underlying futures contract at the option strike price.
Exercise Price The price specified in the option contract at which the buyer of a call can purchase the commodity during the life of the option, and the price specified in the option contract at which the buyer of a put can sell the commodity during the life of the option.
Expiration Date Generally the last date on which an option may be exercised. It is not uncommon for an option to expire on a specified date during the month prior to the delivery month for the underlying futures contracts.
Extrinsic Value See Time Value.
 

 
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