| Term |
Equivalent terms |
Definition |
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Rally
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An upward recovery prices after a prolonged decrease in price to oversold levels, or a bear market rally, which is a brief upward move between two downturns. |
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Range
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The high and low prices recorded over a given trading period, with the size of the price range an indicatory of volatility (large price range = large volatility; low range = little volatility). |
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Rate
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The price of one currency in terms of another, typically used for dealing purposes |
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Rate Differentials
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The difference between the interest rates of two countries, with the higher rate attracting investment financed by the lower rate. |
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Rate of Return
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The percentage of money gained or lost on an investment relative to the amount of money invested. |
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Ratio Spread
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Holding an unequal amount of long and short options positions, such as two short and one long. |
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Realized P/L
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The profit and loss from a closing a position. |
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Regulated Market
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A market in which a government agency monitors and regulates industry activity to protect investors, such as forex trading in the United States. |
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Regulatory Risk
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This is a potential risk to trading in a particular region due to changes to laws and regulations governing trading in that region. |
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Resistance
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A term used in technical analysis to indicate an upper bound price level where there are many willing sellers. Short sellers will often try to sell at this resistance level, while buyers will fight to break out of this overhead resistance level. |
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Retail FX Market
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Individual and institutional traders of smaller size as opposed to dealers and brokers and larger institutions. The retail FX market has been growing in size over the last 10 years, a phenomenon which has helped to drive down the costs of trading. |
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Revaluation
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An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation. |
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Right Hand Side
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Refers to the ask or offer price, the price at which traders buy. |
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Risk
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Foreign Exchange Risk
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The risk that the exchange rate on a foreign currency will move against the position held by an investor. Exposure to uncertain change and the likelihood of less-than-expected returns. |
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Risk Capital
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The amount of money that an individual can afford to invest, which, if lost would not affect their lifestyle. |
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Risk Management
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The use of strategies to reduce financial risk, such as trading only 2% of maximum leverage, or adding a stop-loss to minimize maximum loss. |
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Roll-Over
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When a Spot Forex position is held at the end of the business day prior to its Value date, it will be rolled over to a new value and positions will be subject to a swap charge or credit based on the interest rates of the two traded currencies. |
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Rollover Credit
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Amount credited to a trader's account from an overnight rollover, when the long currency of a currency pair has a higher yielding interest rate than the shorted currency. |
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Rollover Debit
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Amount debited from a trader's account because of an overnight rollover, when the long currency of a currency pair has a lower yielding interest rate than the shorted currency. |
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Rollover Rate
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The daily rollover interest rate is the amount a trader either pays or earns, depending on the established margin and position in the market. To avoid rollovers simply make sure positions are closed at the established end of the market day. |
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Round Lot
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In most cases, 100,000 units of a currency. |
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Round Trip
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The buying and selling of a currency pair and having the profit or loss applied to one's account currency. |