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.
The last date on which an option can be bought or sold.
The month in which an option expires.
(1) Options - the last date after which the option can no longer be exercised.
(2) Bonds - the date on which a bond matures.
A foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large. Examples: Thai baht, Nok, Mexico peso.
Exercise Price (Strike Price)
The price at which an option can be exercised.
Is a politico-economic union of 28 member states that are located primarily in Europe.
Exchange Rate Risk
The potential loss that could be incurred from an adverse movement in exchange rates.
Effective Exchange Rate
An attempt to summarise the effects on a country's trade balance of its currency's changes against other currencies.
A data release which indicates current economic growth rates and trends such as retail sales and employment.
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 company.
Exchange Rate Mechanism.
European Options Exchange.
European Monetary Union.
European Monetary System.
Electronic Fund Transfer.
The European Central Bank.