|
G7 |
The seven leading industrial countries: the US, Germany,
Japan, France, the UK, Canada, and Italy. |
|
G10 |
The G7 plus Belgium, the Netherlands and Sweden, a group
associated with IMF discussions. Switzerland is sometimes
peripherally involved. |
|
Gold Standard |
The original system for supporting the value of issued
currency. Where the price of gold is fixed against the
currency this means that the increased supply of gold does
not lower its price but causes prices to increase. |
|
Gross Basis |
Open positions, calculated without the benefit of any
netting between long and short positions. |
|
"GTC Order" or "Good Till Cancelled Order" |
A trade order placed for a specific amount of time to buy
or sell a foreign currency. An order left with a dealer to
buy or sell at a fixed price. The order remains in place
until it is canceled by the client. |
|
G10: |
G7 plus Belgium, Netherlands and Sweden, a group
associated with IMF discussions. Switzerland is sometimes
peripherally involved. |
|
G5: |
The Group of five. 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 |
|
Gamma: |
The rate at which a delta changes over time or for one
unit change in the price of the underlying asset. |
|
Gap: |
A mismatch between maturities and cash flows in a bank or
individual dealers position book. Gap exposure is
effectively interest rate exposure. |
|
Garman Kohlhagen: |
An option model |
|
Gearing: |
A company's debts expressed as a percentage of its equity
capital. |
|
Gilt edged: |
In the UK, loans issued on behalf of the government to
fund its spending. Longs are gilts with a redemption date
greater than 15 years. Mediums are those with a redemption
date between 5 and 15 years. Shorts are those with a
redemption date within 5 years |
|
Ginnie Mae: |
Securities issued by the Government National Mortgage
Association (GNMA) of the USA. |
|
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 round the
world |
|
GNMA: |
Government National Mortgage Association . The government
owned entity that was established to take over some of the
FNMA functions. Unlike the FNMA its paper bears a
government guarantee. |
|
GNP Deflator: |
Removes inflation from the GNP figure. Usually expressed
as a percentage and based on an index figure. |
|
GNP Gap: |
The difference between the actual real GNP and the
potential real GNP. If the gap is negative an economy is
overheated. |
|
Going long: |
The purchase of a stock or commodity for investment or
speculation. |
|
Going short: |
The selling of a currency or instrument not owned by the
seller. |
|
Gold Clause: |
A clause in a financial agreement linking a monetary
payment to the value of gold. |
|
Gold Franc: |
Several gold francs are minted. The Swiss gold franc is
used in BIS's balance sheet The value of these Francs is
now expressed in terms of SDRs. |
|
Gold Standard: |
The original system for supporting the value of currency
issued. The was 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. |
|
Good until cancelled: |
An instruction to a broker that unlike normal practice the
order does not expire at the end of the trading day,
although normally terminates at the end of the trading
month. |
|
Gramm Rudman: |
The Gramm Rudman Hollings Act is the US law imposing a
gradual reduction in the Federal budget deficit. |
|
Green Currency: |
A notional currency used in the EU's Common Agricultural
Policy to keep agricultural prices at the same level
throughout the EU to ensure a unified market. |
|
Grid: |
Fixed margin within which exchange rates are allowed to
fluctuate. |
|
Gross Domestic Product: |
Total value of a country's output, income or expenditure
produced within the country's physical borders. |
|
Gross National Product: |
Gross domestic product plus " factor income from abroad" -
income earned from investment or work abroad. |
|
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. |
|
Gross: |
Before deduction of tax. |
|
Grossing-up: |
Calculating a gross or pre-tax rate of interest or
dividend by adding a notional amount of tax to the net, or
post-tax amount received. |
|
Group of Five etc.: |
See G5, G7, G10. |
|
GTC: |
See Good until cancelled. |
