P1:a/b P2:c/d QC:e/f T1:g
gloss JWBK182-McDowell April 25, 2008 16:35 Printer: Yet to come
188 GLOSSARYgap A price zone at which no trades occur. For example, if a market that has
previously traded at a high of $20 per share opens at $22 on the following day. The
price zone between $20 and $22 is referred to as a gap-up. If the price zone were
to go from $22 to $20 it would be a gap-down. Sometimes Fed announcements or
corporate earnings announcements can create an immediate gap even in the middle
of a trading day.
Globex©R Today the CME Globex trading system operates at the heart of CME.
Proposed in 1987, it was introduced in 1992 as the first global electronic trading
platform for futures contracts. This fully electronic trading system allows market
participants to trade from booths at the exchange or while sitting in a home or an
office thousands of miles away.
good ‘til canceled (GTC) By choosing GTC, your order will remain open until it is
executed or canceled, regardless of the number of trading days.
gross domestic product (GDP) The monetary value of all products and services
produced in a country over a certain time period. In the United States, the GDP’s
growth is a popularly used indicator of overall economic health.
grounded assessments These are trading and investing rules that are based on
reality versus forecasts or predictions. For example, trade and investment entries
based on price and volume would be considered grounded assessments. The ART
signals are all grounded assessments.
hedge To reduce risk in an investment or trade by offsetting it with another in-
vestment or trade.
hedge fund A managed portfolio of investments that is generally unregulated (un-
like a mutual fund) and may invest in any highly speculative markets, including
options.
hedger A market participant who implements a position to reduce price risk. The
hedger’s risk position is exactly opposite that of the speculator, who accepts risk
in implementing positions to profit from anticipated price moves.
high probability Trades or investments that statistically have a higher probability
for success.
higher time-frame filter A filter technique used to look at the market you are
trading or investing in on a higher time frame to see if it confirms your primary
time frame.
hyperbolic move A sharp and significant move to the up or down side of your
position. You might decide toscale outof a position to lock in profit if this type of
move occurs.
immediate or cancel (IOC) By choosing IOC, your order will have immediate ex-
ecution of all or part of the quantity of stock you specified. Any portion of the order
that is not executed immediately is automatically canceled.