Glossary

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Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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  • Rally
    A recovery in price after a period of decline.
  • Range
    When a price is trading between a defined high and low, moving within these two boundaries without breaking out from them.
  • Rate
    In Foreign Exchange (Forex), the rate is the value of one currency against another, representing how much of one it would take to buy the other. So, for example, if the exchange rate between the Euro and the British Pound is 0.85, it would cost €0.85 to buy £1. Exchange rates are expressed in currency pairs, which use an acronym for each currency, followed by the exchange rate. So in the example given above, the rate would read EUR/GDP 0.85.
  • RBA
    Reserve Bank of Australia, the central bank of Australia.
  • RBNZ
    Reserve Bank of New Zealand, the central bank of New Zealand.
  • Real money
    Traders of significant size including pension funds, asset managers, insurance companies, etc. They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intra-day speculators.
  • Realised profit/loss
    The amount of money you have made or lost when a position has been closed.
  • Resistance level
    A price that may act as a ceiling. The opposite of a support level.
  • Retail investor
    An individual investor who trades with money from personal wealth, rather than on behalf of an institution.
  • Retail sales
    Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of different types and sizes. This data provides a look into consumer spending behaviour, which is a key determinant of growth in all major economies.
  • Revaluation
    When a pegged currency is allowed to strengthen or rise as a result of official actions; the opposite of a devaluation.
  • Rights issue
    A form of corporate action where shareholders are given rights to purchase more stock. Normally issued by companies in an attempt to raise capital.
  • Risk
    Exposure to uncertain change, most often used with a negative connotation of adverse change.
  • Risk management
    The employment of financial analysis and trading techniques – such as attaching stops and limits – to reduce and/or control exposure to various types of risk.
  • Rollover
    A rollover is the simultaneous closing of an open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies.

    In the spot forex market, trades must be settled in two business days. For example, if a trader sells 100,000 Euros on Tuesday, then the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to customers, all open forex positions at the end of the day (5:00 PM New York time) are automatically rolled over to the next settlement date. The rollover adjustment is simply the accounting of the cost-of-carry on a day-to-day basis.
  • Round trip
    A trade that has been opened and subsequently closed by an equal and opposite deal.
  • Running profit/loss
    An indicator of the status of your open positions; that is, unrealised money that you would gain or lose should you close all your open positions at that point in time.
  • RUT
    Symbol for Russell 2000 index.