Stock sold with the buyer no longer entitled to the warrants formerly attached to the stock.
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.
Exchange of futures for physicals
A futures contract provision involving an agreement for delivery of a physical product that does not necessarily conform to contract specifications in all terms from one market participant to another, and a concomitant assumption of equal and opposite futures positions by the same participants at the time of the agreement.
Exchange traded commodities (ETCs)
Listed transferable securities that enable investors to buy and sell exposure to commodities through regular brokerage accounts; similar to exchange traded funds (ETFs).
Exchange traded funds (ETFs)
Exchange traded funds are collective investment vehicles which track indices - they can allow low cost exposure to the performance of an index as quickly and efficiently as the most liquid stocks.
Ex-dividend date
The date on which a stock goes ex dividend. After this date the right to receive a current dividend will not automatically transfer from the seller of the stock to the buyer.
Exercise
The use of the right to purchase the underlying instrument by the holder of a call, or to sell the underlying instrument by the holder of a put.
Upon exercise of an option on a futures contract, an option seller will be assigned (at the exercise price) a futures position opposite to the position acquired by the option buyer.
Upon exercise of an option on equity shares, an option seller will be required to deliver shares at the exercise price (in the case of a call option) or purchase shares at the exercise price (in the case of a put option).
Exercise of an option on an equity-index contract, either a call or a put, results in a cash settlement based on the difference between the exercise price and the index at the time of exercise.
Exercise notice
The formal notification that the holder of a call (or put) option wishes to buy (or sell) the underlying security at the exercise price.
Exercise price
Exercise value
For a call option, this is the amount by which the strike price is below the underlying investment; for a put option, it is the amount by which the strike price is above the underlying investment.