R 2012

1.


Rainbow Option


An option that has two or more underlying assets. The option only pays out when all the underlying assets act accordingly.


2.


Rally


A period where prices surge upward.


3.


Range


The difference between the highest and lowest price of a currency pair during a given trading period.


4.


Rate


Price at which a currency can be purchased or sold against another currency.


5.


Rate Differentials


The difference between the interest rates of two countries. The country with the higher interest rate will attract investment that will be financed in the lower rate country.


6.


Rate of Return


The percentage of money gained or lost on an investment relative to the amount of money invested.


7.


Ratio Spread


Holding an unequal amount of long and short options positions. Two short and one long is a popular ratio spread strategy.


8.


Reaction


When prices fall after a period of advance.


9.


Realized P/L


The profit and loss that is generated by closing a position.


10.


Reciprocal Currency


A currency pair involving the US Dollar in which the US Dollar is not the first currency quoted. An example is the euro which is the base currency when paired with the US dollar. EUR/USD is More…


11.


Regulated Market


A market in which a government agency monitors and regulates industry activity to protect investors. An example is forex trading in the United States.


12.


Resistance


Price level at which technical analysts note persistent selling of a currency.


13.


Resistance Point or Level


See Resistance.


14.


Retail FX Market


Comprises a wide range of non-institutional traders, from large organizations to individual investors. In less than 10 years, a relatively small number of online currency brokers and market More…


15.


Retail Side


The sale of services, goods, or commodities in small quantities directly to consumers.


16.


Revaluation


Daily calculation of potential profits or losses on open positions based on the difference between the settlement price of the previous trading day and the current trading day.


17.


Revaluation Rate


A rate, possibly historical (as in the closing rate for the previous trading day), which is used to revalue a dealer’s position or book.


18.


Right Hand Side


Refers to the ask or offer price. This is the price at which traders buy.


19.


Risk (Foreign Exchange Risk)


The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced.


20.


Risk Capital


The amount of money one could risk without impinging on one’s accustomed lifestyle.

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