Spread betting glossary | GHI

Glossary

 

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G

Gap

The phenomenon of a market trading at a price away from the previous traded price without trades occurring at intervening prices: often when market trading resumes after a period of closure.

Gearing (also see Leverage)

A term to describe how much has essentially been borrowed in order to fund your investment. Since spread betting companies normally only require an initial margin in order for you to place your trade, they actually effectively giving you credit to place the rest of the position. If the investment loses money, you may be required to put in more cash than you initially deposited to pay off the loss. The terminology for the initial outlay varies across the different spread betting providers, however the most popular phrases used are: deposit, margin, or notional trading requirement (NTR).

Gold

A precious metal which has universal price in the global market place. Gold Fixing is process that takes place each in London to provide a benchmark to the industry.

Gross Domestic Product (GDP)

One of the measures of national income and output for a country's economy; the total value of all final goods and services produced by the economy.

Guaranteed Stop

A Stop-loss order that puts an absolute limit on your liability, eliminating the chance of slippage and guaranteeing an exit price for your trade.

 

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H

Hedge

A trade or position that reduces or eliminates the risk of loss from an adverse price movement in a position already held.

HKFE

Hong Kong Futures Exchange

 

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I

Illiquid Market

In an illiquid market, a small amount of business often moves prices by a disproportionate amount, and bid and offer prices can be far apart.

Interbank Rates

Foreign Exchange rates at which large international banks quote other large international banks.

Interest Rate Futures

Interest rate futuresare investment products which enable you to speculate/hedge on the main interest rate contracts, which includes Gilts, Short Sterling, Eurodollars, Bunds, and T-Bonds. You can bet on the direction of a country's 3 month interest rates using short-term interest rate contracts.

IPE

International Petroleum Exchange, London