Forex glossary of terms
Forex glossary - R
Rally - An upward movement of prices following a decline. The opposite of a reaction.
Range - The high and low prices or high and low bids and offers recorded during a specified time.
Rate - The price of one currency in terms of another (exchange rate).
Rating - the measurement of a company, country or entity's credit quality, as assigned by a credit rating agency like Standard & Poor's or Moody's Investors Service; ratings are typically expressed as a letter or group of letters and numbers Realized and Unrealized Profit - Unrealized profit is a gain from an increase in the price of an asset that has not been cashed in. Realized profits are made from the cashing in of the unrealized gain.
Recession - A decline in business activity. Often defined as two consecutive quarters with a real fall in GNP.
Rectangle - Similar to the consolidation portion of a flag pattern, a rectangle is a continuation pattern denoting a trading range characterized by strong support and resistance lines. Unsurprisingly, rectangles are often known as trading ranges; consolidation zones; or congestion areas.
Registered representative - A person employed by, and soliciting business for, a commission house or futures commission merchant.
Repurchase (REPO) - Repos are short-term money market instruments. The trader sells a security (government security) and buys it back only after a short period of time, typically only overnight. Repos are primarily used raise short-term capital.
Reserve Currency - A currency held by a central bank on a permanent basis as a store of international liquidity, these are normally Dollar , Deutschemark, and sterling.
Reserves - Funds held against future contingencies, normally a combination of convertible foreign currency, gold, and SDRs. Official reserves are to ensure that a government can meet near term obligations. They are an asset in the balance of payments.
Resistance - A price level at which a currency pair has had trouble breaking, and hence consolidation is expected. If the resistance line holds and the currency pair retraces, the sellers have outnumbered the buyers; on the other hand, buyers have outnumbered sellers if the resistance level is broken, and momentum may allow for a strong continuation of the trend.
Retail Price Index - Measurement of the monthly change in the average level of prices at retail, normally of a defined group of goods.
Retracement - A price move in the opposite direction of a recent trend.
Revaluation - Increase in the exchange rate of a currency as a result of official action.
Revaluation Rates - The market rates that are used by traders in the evaluation of the gains and losses in their accounts each day.
Reversal - A pattern that suggests a potential shift or deceleration of the current trend. A reversal of an up move will be reflected in a downward price movement.
Reuter Dealing - A system for screen based trading that has been in operation since the early 1980s now has a matching optional enhancement known as Dealing 2000-2.
Risks - There are risks associated with any market. It means variance of the returns and the possibility that the actual return might not be in line with the expected returns. The risks associated with trading foreign currencies are - market, exchange, Interest rate, yield curve, volatility, liquidity, forced sale, counter party, credit, and country risk.
Risk appetite - investors' tolerance for financial risk; some investors are willing only to buy safe assets like Treasuries, while others would gamble with higher-yielding assets Risk management - The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves among others consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk.
Risk Premium - Additional sum payable or return to compensate a party for adopting a particular risk.
Risk Capital - The capital that an investor does not need to maintain his/her living standard.
Risk Management - Term to describe when a trader will use analysis and other trading techniques to avoid substantial risks to his portfolio.
Rolling over - The substituting of a far option for a near option of the same underlying stock at the same strike/exercise price.
Rollover - Where the settlement of a deal is carried forward to another value date based on the interest rate differential of the two currencies example - next day.
Rounding Top and Bottom - Similar to a Cup and Handle pattern, a rounding top signifies a rounded resistance line and a bearish overall trend. Alternatively, a rounding bottom is a bullish for which the bottom curve can serve as a support line. Both patterns are best-suited to longer-term analyses.
Round-turn - See Commission.
RSI (Relative Strength Index) - An oscillator that measures the size of recent upward trends against the size of downward trends within the specified time frame. High RSI scores - above 70 or perhaps 80 - indicate that the currency is overbought, and hence due for a reversal. Alternatively, low RSI scores indicate that the currency is oversold, and hence due for a fall in price.
Runaway gap - A gap in prices after a trend has begun that signals the halfway point of a market move.
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