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Glossary of Forex (Foreign Exchange) Terminology  G – I

 

G

 

Gearing – Also known as margin trading. A term used to in the association of actual equity versus controlling equity.

 

Group of Five (G5) – It means five leading industrial nations (France, Japan, Germany, the UK and US), which meet from time-to-time to discuss common economic problems.

Group of Seven (7) — It includes 7 leading non-communist industrial nations composed of G5 plus Canada and Italy.

 

Group of Ten (G10) — It is also known as The Paris Club which includes Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, UK and US. These nations signed an accord in 1962 to increase the fund available to the IMF and aid member countries with balance-of payments difficulties.

 

Goldilocks Economy — A term coined back in the mid-1902 to describe an economy that was not too hot and not too cold. This typically defines an economy that enjoyed steady growth with nominal rate of inflation.

 

Good ‘til Cancelled (GTC) – A demand to buy or sell at a specified price. This order remains open until filled or until the client cancels.

 

H

 

Hedging – A hedging transaction is a purchase or sale of a financial product, having as its purpose as the exclusion of loss arising from price fluctuations. With regards to currency transactions it would protect one against fluctuations in the foreign exchange rate. (see Forward Contract)

 

I

 

Inflation – An economic state whereby prices for consumer products rise, eroding purchasing power.

 

Initial margin – The initial deposit of collateral required to enter into a point as a guarantee on future performance.

 

Interbank Rates – The Foreign Exchange rates at which large international banks estimate other large international banks.

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