Spread Betting Glossary: E
1. Earning: The profit derived from a particular trade or position, calculated after commissions, financing costs and any other applicable expenses are deducted.
2. Economic indicators: Factors that relate to the health of a given economy, and that are often used as the basis of trading decisions. Economic indicators like growth, unemployment figures etc. may influence how a market will trade in a particular asset, because they affect how currencies are valued, inflation, interested rates, exports and import, and many more different variables which interact with market value.
3. EPS: A ratio for the comparison of stocks, EPS stands for Earnings Per Share (dividend yield/number of shares).
4. Ex-Dividend: Shares which attract a dividend that are acquired without the payment of the latest dividend attached, usually priced at a lower value to reflect their status.
5. Expiry date: The date at which a position is deemed to expire, or close. In spread betting, the position is settled at the expiry date and reopened the next day, thereby attracting liability for financing costs if the trader does not close the position beforehand.
6. Exposure: The depth of investment in a particular market or sector, measured as a proportion of total capital.