In trading, equity can mean several different things. However, it usually comes down to the ownership of an asset without any debt involved.

 

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EDSP stands for exchange delivery settlement price, and refers to the price at which exchange-traded derivative contracts are settled. Stock exchanges use EDSP to calculate the amount that each party to an options or futures contract owes at the time of that contract’s expiry.

 

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A dividend is the portion of the profit that a company chooses to return to its shareholders, usually expressed as a percentage.

 

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Depreciation is the term given to the decline in an asset’s value, either due to market conditions or other factors like wear and tear. It is the opposite of appreciation.

 

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A derivative’s delta is defined as its price movement in relation to the change in the price of its underlying asset. It can also sometimes be referred to as a hedge ratio and is most often used when dealing with options.

 

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The debt ratio is an indication of how much debt a company is holding when compared to the value of its assets. It can also be applied to individuals: in which case it is the cost accrued by their debt compared to total income each year.

 

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