Forex glossary G to H

Newcomers to the world of Forex trading can often find themselves bewildered by the terms, jargon and acronyms that are commonly flung around. There’s a lot to learn in order to trade currencies successfully but getting a grip on the lingo is one of the first stages.

glossary 2


The Group of Seven major economies as reported by the International Monetary Fund (IMF). These are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The G* included Russia, but the country’s participation was suspended in the wake of the Crimean crisis.

A quick market move, usually following an economic news announcement, in which no trades occur.

Go long
Buying a currency position in the expectation that it will increase in value.

Go short
The opposite of going long; entering a trade in the expectation that the currency pair will decrease in value. Note that every forex trade requires one trader to go long and another to go short.

Gold Standard
Now obsolete monetary system in which the value of a currency was defined in terms of a fixed amount of gold. The system was abandoned during the Great Depression of the 1930s but fluctuations in gold prices still have a marked effect on currency markets.

Good ‘til cancelled (GTC)
A trade order that is left with a dealer to buy or sell at a fixed price. The order stays in play until specifically cancelled by the client.

Good ‘til date
A trade order that will last until a stipulated date, if it is not filled in the meantime.

Gross domestic product (GDP)
The value of all goods and services produced within a country or region over a given time period – generally measured quarterly or annually.

Guaranteed stop
A stop-loss order that guarantees to close your position at a pre-specified level if the market moves to or beyond that point.


The part of the price quote belonging to both the bid and the offer. If the EUR/USD currency pair, for example, has a bid of 1.4231 and an ask of 1.4255, the handle would be 1.42. Also known as the big figure.

If a country’s monetary policy-makers (usually the central bank) are hawkish, they believe that interest rates should increase. This is usually a response to high inflation.

Head and shoulders
A common chart pattern with a high peak (the head) that can be seen between two lower peaks (the shoulders)


Reducing the risk of adverse market movements on a trader’s portfolio to guard against volatility. There are various hedging strategies but all seek to minimise losses in the event of an unexpected market movement.

The daily high and low prices for a given currency pair.

Hit the bid
Sell everything at the current market bid

The Hong Kong Seng Index.

A period of very high inflation. There is no defined rate at which an economy enters hyperinflation but economists generally consider monthly rates of 50% or higher to be hyperinflation.