| EFP |
Exchange of Futures for Physicals. An alternate form of delivery in futures markets. |
| End User |
The ultimate (final) consumer of any product. |
| Equity |
The residual dollar value of leveraged trading accounts, assuming it was liquidated at current market prices. |
| Ethanol |
An alcohol that can be derived from corn, sugar or other organic materials. Ethanol has become the oxygenate of choice in the U.S., replacing MTBE as a blending agent to produce cleaner burning gasoline. |
| European Option |
An option which may only be exercised upon its expiration date. |
| Ex Pit |
(1.) The transferring of existing positions from one account to another within the same FCM where no change in ownership is involved. (2.) The transferring of existing positions from one FCM to another where no change of ownership is involved. Sometimes used incorrectly to describe an EFP. |
| Exchange Risk Factor |
The delta value of an option as computed daily by the exchange on which it is traded. |
| Exercise |
To take possession of the underlying instrument by use of the rights granted by the purchase of an option. Exercise of call results in a long position; of a put, a short position. |
| Exercise (Strike) Price |
The price at which an option holder may buy or sell the underlying instrument during the life of the option. |
| Expanded Limits |
Variable price limits. |
| Expiration Date |
The last day an option may be exercised. |
| Extrinsic Value |
The amount by which an option’s premium exceeds in intrinsic (actual) value. Also know as time value. |
