Word of the DayFutures Terms that begin "G"
Gamma
A measurement of how fast the delta of an option changes, given a unit change in the underlying futures price; the "delta of the delta.
Gearing
In finance, gearing (or leverage) is using given resources in such a way that the potential positive or negative outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity.
Good 'Till Canceled Order (GTC)
An order which is valid until cancelled by the customer. Unless specified GTC, unfilled orders expire at the end of the trading day.
Grades
Various qualities of a commodity.
Grantor
The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, stands ready to purchase the underlying commodity (or futures contract) in the case of a put option or to sell the underlying commodity (or futures contract) in the case of a call option.
Guaranteed Introducing Broker
An introducing broker that has entered into a guarantee agreement with a futures commission merchant (FCM), whereby the FCM agrees to be jointly and severally liable for all of the introducing broker's obligations under the Commodity Exchange Act. By entering into the agreement, the introducing broker is relieved from the necessity of raising its own capital to satisfy minimum financial requirements. In contrast, an independent introducing broker must raise its own capital to meet minimum financial requirements.
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