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Friday, August 29, 2008
FOREX GLOSSARY
G5
The five leading industrial countries, being US, Germany, Japan, France, UK
G7
The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10
G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap
The price Gap between consecutive trading ranges ( i.e. the low of the current range is higher than the high of the previous range)
GDP - Gross Domestic Product
Total value of a country's output, income or expenditure produced within the country's physical borders
GNP - Gross National Product
Gross domestic product plus income earned from investment or work abroad.
Globex
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 world.
Gold Standard
The original system for supporting the value of currency issued. The way that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
Gold Tranche
Part of the country quota for IMF members that had to be paid in gold. This was normally 25% of the quota, the remainder being in domestic currency. The Gold Tranche was automatically available to members without condition.
Golden Cross
An intersection of two consecutive moving averages which move in the same direction and suggest that the currency will move in the same direction
Going long
The act of buying a currency pair. For example, if a client bought the GBP/USD, he would be “going long” the GBP.
Going short
The act of selling a currency pair. For example, if a client sold the GBP/USD, he would be “going short” the GBP.
GTC - Good-Till-Cancelled
An order left with a Dealer to buy or sell at a fixed price. The GTC will remain in place until executed or cancelled.
Gross Settlement
A process where full payment of each transaction is made rather than clearing a group of transactions as currently occurs in the FX market. A method designed to eliminate capital risk.
The five leading industrial countries, being US, Germany, Japan, France, UK
G7
The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10
G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap
The price Gap between consecutive trading ranges ( i.e. the low of the current range is higher than the high of the previous range)
GDP - Gross Domestic Product
Total value of a country's output, income or expenditure produced within the country's physical borders
GNP - Gross National Product
Gross domestic product plus income earned from investment or work abroad.
Globex
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 world.
Gold Standard
The original system for supporting the value of currency issued. The way that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
Gold Tranche
Part of the country quota for IMF members that had to be paid in gold. This was normally 25% of the quota, the remainder being in domestic currency. The Gold Tranche was automatically available to members without condition.
Golden Cross
An intersection of two consecutive moving averages which move in the same direction and suggest that the currency will move in the same direction
Going long
The act of buying a currency pair. For example, if a client bought the GBP/USD, he would be “going long” the GBP.
Going short
The act of selling a currency pair. For example, if a client sold the GBP/USD, he would be “going short” the GBP.
GTC - Good-Till-Cancelled
An order left with a Dealer to buy or sell at a fixed price. The GTC will remain in place until executed or cancelled.
Gross Settlement
A process where full payment of each transaction is made rather than clearing a group of transactions as currently occurs in the FX market. A method designed to eliminate capital risk.
Labels: Forex Glossary
