| Gamma:
|
Gamma
expresses how fast delta changes with a one point increase in the price
of the underlying. Gamma
is positive for all options. If
an option has a delta of 45 and a gamma of 10, then the option’s expected
delta will be 55 if the underlying goes up one point.
If we consider delta to be the velocity of an option, then gamma
is the acceleration.
|
| Gap:
|
When
the low of the current price bar is higher than the high of the preceding
price bar, or the high of the current price bar is lower than the
low of the preceding price bar.
Some
traders also use the term gap to refer to an opening price that is
higher than the high (or lower than the low) of the preceding price
bar (an "opening" gap).
|
| Generals:
|
"Generals"
refers to the major buy side institutions such as Mutual Funds.
|
| Good-till-canceled
(GTC) Order: |
A
trade order that remains open until you cancel it (in practice, for
perhaps 60 days; check with your broker); there is no need to re-enter
it day after day. |
| Grantor: |
A
person who sells an option and assumes the obligation to sell (in the
case of a call) or buy (in the case of a put) the underlying futures
contract at the exercise price. Also referred to as an Option Seller
or Writer. |
| Guaranteed
Introducing Broker:
|
A firm or individual that solicits and accepts commodity futures orders
from customers but does not accept money, securities or property from
the customer. A Guaranteed Introducing Broker has a written agreement
with a Futures Commission Merchant that obligates the FCM to assume
financial and disciplinary responsibility for the performance of the
Guaranteed Introducing Broker in connection with futures and options
customers. Therefore, unlike and Independent Introducing Broker, a Guaranteed
Introducing Broker must introduce all accounts to its guarantor FCM
but is not subject to minimum financial requirements. All Introducing
Brokers must be registered with the CFTC. |
| Guts:
|
A
strangle made up of in-the-money options with the underlying centered
between the strikes.
|