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There are two sets of terminals on a GFCI. They are labeled LINE and LOAD. Each set has a hot and a neutral. To wire a GFCI to an older two wire system without a grounding conductor, you terminate the hot wire coming from the panel to the line terminal(usually the brass colored one) and the neutral wire to the other one(usually the silver colored one). If there is another set, or sets(black and white) in the outlet box, they terminate on the load terminals respectively. Code requires any GFCI that has no grounding conductor(the bare one in modern wiring), to have the sticker which states no grounding conductor. This sticker comes with a new GFCI. The GFCI will still operate when there is a ground present. Basically, a GFCI monitors the current between the hot and neutral, if there is any imbalance, which would happen if some of the current was going through another grounded means, it will trip, thereby protecting you .

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Q: Can you hook up a gfci to a 2 wire system?
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