Economic Indicator – One of any official statistics issued by the government for the purpose of measuring the current economic growth and stability. Examples of economic indicators include gross domestic product (GDP), unemployment rates, inflation, and consumer buying.

End-of-Day Order (EOD) – An EOD is an order to buy or sell at a specific price or rate that remains open for the duration of the trading day and closes with the close of the trading day.

European Monetary Union (EMU) – Officially known as the Economic and Monetary Union, the EMU was established to develop and issue a single multinational currency among member countries of the European Union. The euro was put in place by the EMU in 1999, and it officially replaced national currencies of those countries in 2002. The EMU no longer exists. Countries officially using the euro are collectively known as Eurozone.

Euro – The official currency of Eurozone countries. As of 2011, Eurozone countries include Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain. The Euro is issued and maintained by a union of national central banks and the European Central Bank (ECB).

European Central Bank (ECB) – The European Central Bank is the issuing and economic authority for the currency of Eurozone member states. The ECB is headquartered in Frankfurt, Germany and works closely with the central banks of member states.

Eurozone Labor Cost Index – This index is a measurement of the annualized rate of inflation for the benefits and compensation packages for civilian workers in Eurozone countries. This index is considered a reliable indicator of overall inflation.

Eurozone Organization for Economic Cooperation and Development (OECD) – OECD issues a combined monthly measurement of economic health within Eurozone called the Leading Indicator. The ten indicators making up the Leading Indicator include stock prices, interest rates, housing permits, average weekly hours, new orders and consumer expectations.

Exchange Rate – The amount of one currency required to buy another currency.

Exchange Rate Risk – A loss that can be incurred by traders due to movement in the bid/ask prices of a currency while a position remains open.

Exposure – Traders are said to be in a state of exposure when buying or selling financial instruments hedged by currency.