TRADER'S DICTIONARY - G

Gamma

The second order rate of change of an option, measuring change in delta with respect to changes in the underlying asset price.

G8

Forum, for governments of eight nations of the northern hemisphere: US , Germany, Japan, France, UK, Canada, Italy, and Russia. Previously known as the G7 and sometimes expanded to G10 or G20.

Gold Contract

Standard unit of trading gold; equal to 10 troy ounces.

Gold Standard

A type of exchange rate regime which fixes a currency to the price of gold. Prior to 1973, the value of the US Dollar was fixed to the price of gold, and all other currencies were fixed to the Dollar.

Golden Cross

Refers to a technical analysis pattern in which two moving averages intersect, believed to indicate that the reference currency will move in the same direction.

Goldilocks Economy

Term attributed to Alan Greenspan, describing an economy (and corresponding monetary policy) that is characterized by both steady growth and moderate inflation. In other words, neither too hot nor too cold.

Good-till-Cancelled Order (GTC)

Type of Order to buy or sell a security/currency at a fixed price that doesn’t expire unless the order is executed or canceled.

Grid Trading

Series of positions and open orders undertaken with a predetermined spread.

Gross

An amount calculated before deduction of tax or commissions.

Gross Domestic Product (GDP)

Basic measure of an economy’s economic performance, equal to the market value of all final goods and services
made within the borders of a nation in one year.

Gross National Product

Value of all goods and services produced in a country in one year, plus income earned by its citizens abroad, minus income earned by foreigners in the country.