The Prop Trader's Dictionary

From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.

E

Earnings Per Share

Earnings Per Share (EPS) is a financial metric that indicates how much profit a company generates for each outstanding share of its stock. It is calculated by dividing a company's net profit by its total number of shares. EPS is one of the most widely used indicators of a company's profitability and is closely watched by investors.

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EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a measure of a company's core operational profitability, stripping out non-operating expenses to give a clearer picture of business performance. EBITDA is widely used in financial analysis and company valuations.

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Equity Definition

In financial markets, equity refers to ownership in a company, typically represented by shares of stock. It also refers to the value of an asset minus any liabilities associated with it. In a trading context, equity commonly describes the current value of a trader's account after accounting for open positions.

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3+ terms

Explore all glossary terms currently grouped under the letter "E".