G7 plus Belgium, Netherlands and Sweden, a group
associated with IMF discussions. Switzerland is sometimes
G5 The Group of Five. The five leading industrial countries: US,
Germany, Japan, France, UK.
G7 The seven leading industrial countries, being US , Germany,
Japan, France, UK, Canada, Italy.
Gamma The rate at which a delta changes over time, or for one unit
change in the price of the underlying asset.
A mismatch between maturities and cash flows in a bank, or
individual dealer's position book. Gap exposure is
effectively interest rate exposure.
A system for global after hours electronic trading in futures
and options developed by Reuters for CME and CBOT, for
use in conjunction with various exchanges around the
GNP Deflator Removes inflation from the GNP figure. Usually expressed as
a percentage and based on an index figure.
The difference between the actual real GNP and the
potential real GNP. If the gap is negative an economy is
Going Long The purchase of a stock or commodity for investment or
Going Short The selling of a currency or instrument not owned by the
The original system for supporting the value of currency
issued. Accordingly, the monetary system backs its currency
with a reserve of gold, and allows currency holders to
convert their currency into gold. This system was in vogue
before 1973 when the fixed exchange rates were prevalent.
Gross Before deduction of tax.
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Gross Domestic Product
Total value of a country's output, income or expenditure
produced within the country's physical borders. GDP is the
broadest measure of aggregate economic activity available.
Reported quarterly, GDP growth is widely followed as the
primary indicator of the strength of economic activity. GDP
represents the total value of a country's production during
the period and consists of the purchases of domestically
produced goods and services by individuals, businesses,
foreigners and governments.
Gross National Product
Gross domestic product plus "factor income from abroad" -
income earned from investment or work abroad.
GTC See "Good until canceled".
GTC "Good Till Cancelled"
An order left with a dealer to buy or sell at a fixed price.
The order remains in place until it is cancelled by the
client. Different than normal practice, the order does not
expire at the end of the trading day, although normally
terminates at the end of the trading month.
Hard Currency A currency whose value is expected to remain stable or
increase in terms of other currencies.
Head and Shoulders
A pattern in price trends which chartists consider indicative
of a price trend reversal. In this pattern, the price has risen
for some time, and at the peak of the left shoulder, profit
taking has caused the price to drop or level. The price then
rises steeply again to the head before more profit taking
causes the price to drop to around the same level as the
shoulder. A further modest rise or level will indicate that a
further major fall is imminent. The breach of the neckline is
the indication to sell.
The purchase or sale of options or futures contracts as a
temporary substitute for a transaction to be made at a later
date. Usually it involves opposite positions in the cash,
futures or options markets.
A hedging transaction is one whose main aim is to protect
an asset or liability against a fluctuation in the foreign
exchange rate, rather than profit from the exchange rate
HIBOR Hong Kong Inter-bank Offered Rate.
The annualized standard deviation of percentage changes in
futures prices over a specific period. It is an indication of
past volatility in the marketplace.
Hit the Bid Acceptance of purchasing at the offer, or selling at the bid.
Holder Same as buyer.
Housing Starts Housing starts are a measure of the number of residential
units on which construction has begun each month.
Very high and self-sustaining inflation levels. One definition
is the period from which inflation exceeds 50%, until it
drops below that level for 12 months.