Financial Glossary

Gapping

The phenomenon of a market trading at a price away from the previous traded price without trades occurring at intervening prices; it more usually, but not necessarily, relates to when a market resumes trading after a period of closure. Also see Slippage.

Gearing

Gearing is a measure of leverage used, usually expressed as a percentage. A highly leveraged trade would require a small initial outlay in comparison to the notional value of the trade, and can be seen as high risk. Small price movements create amplified gains or losses, and therefore losses can exceed deposits made. Also see Leverage.

Good-for-day (day order)

An order type that will expire if not filled by the end of the day. See also Order to open, Good-till-cancelled, Fill.