Gambler
One who seeks profit by taking noncalculated or man-made risks. If one flips a coin to determine his course of action, he is gambling as to the outcome. If one bets on the horses, the outcome of a sports event, or some other man-made event, he is gambling. A gambler is distinguished from a speculator in that a speculator could profit from price change if he knew enough about the supply and demand factors used to determine price. He also trades economic goods, thus benefitting mankind.
Gap
A term used by technicians to describe a jump or drop in prices; i.e., prices skipped a trading range. Gaps are usually filled at a later date.
Geometric index
An index in which a 1% change in the price of any two stocks comprising the index impacts on it equally. The Value Line Average index is composed of 1,700 stocks and is a geometric index.
Give-up
A customer “give-up” is a trade executed by one broker for the client of another broker and then “given-up” to the regular broker; e.g., a floor broker with discretion must have another broker execute the trade.
Good till Cancelled (GTC)
A qualifier for any kind of order extending its life indefinitely; i.e., until filled or canceled.
Grantor
Someone who assumes the obligation, not the right, to buy (for a put) or sell (for a call) the underlying futures contract or commodity at the strike price. See also Writer.
Guarantee fund
One of two funds established for the protection of customers’ monies; the clearing members contribute a percentage of their gross revenues to the guarantee fund. See also Surplus fund.
Guided account
An account that has a planned trading strategy and is directed by either a CTA or a FCM. The customer is advised on specific trading positions, which he must approve before an order may be entered. These accounts often require a minimum initial investment, and may use only a predetermined portion of the investment at any particular time. Not to be confused with a discretionary account.
