Uncovered Options Trading System
Gamma is 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."
Ginzy Trading is a non-competitive trade practice in which a floor broker, in executing an order—particularly a large order—will fill a portion of the order at one price and the remainder of the order at another price to avoid an exchange's rule against trading at fractional increments or "split ticks."
"Give Up" is a contract executed by one broker for the client of another broker that the client orders to be turned over to the second broker. The broker accepting the order from the customer collects a fee from the carrying broker for the use of the facilities. "Give Up" is often used to consolidate many small orders or to disperse large ones.
Gold Certificate is a certificate attesting to a person's ownership of a specific amount of gold bullion.
Gold Fixing (also referred to as Gold Fix) is the setting of the gold price at 10:30 a.m. (first fixing) and 3:00 p.m. (second fixing) in London by representatives of the London gold market.
Gold/Silver Ratio is the number of ounces of silver required to buy one ounce of gold at current spot prices.
Good This Week Order (GTW) is an order which is valid only for the week in which it is placed.
Good 'Till Cancelled Order (GTC) is an order which is valid until cancelled by the customer, unless specified GTC, unfilled orders expire at the end of the trading day. See Open Order.
Grades term refers to the various qualities of a commodity.
Grading Certificates is a formal document setting forth the quality of a commodity as determined by authorized inspectors or graders.
Grain Futures Act is the federal statute that provided for the regulation of trading in grain futures, effective June 22, 1923; administered by the U.S. Department of Agriculture; amended in 1936 by the Commodity Exchange Act.
Grantor is a 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.
Gross Processing Margin (GPM) refers to the difference between the cost of a commodity and the combined sales income of the finished products that result from processing the commodity. Various industries have formulas to express the relationship of raw material costs to sales income from finished products.
A Guaranteed Introducing Broker is an IB that has a written agreement with a Futures Commission Merchant (FCM) 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. By entering into the agreement, the introducing broker is relieved from the necessity of raising its own capital to satisfy minimum financial requirements. A Guaranteed Introducing Broker is not subject to minimum financial requirements. An independent introducing broker must raise its own capital to meet minimum financial requirements.
Haircut is the value of assets for purposes of capital, segregation, or margin requirements, a percentage reduction from the stated value (e.g., book value or market value) to account for possible declines in value that may occur before assets can be liquidated.
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.