|
Realized Gain/Loss |
The actual gain or loss resulting from closing an open
position. |
|
Resistance |
A price level at which you would expect selling to take
place. |
|
Resistance Point or Level |
A price recognized by technical analysts as one which is
likely to result in a rebound, but if broken through is
likely to result in a significant price movement. |
|
Risk management |
The identification and acceptance or offsetting of the
risks threatening the profitability or existence of an
organization. With respect to foreign exchange, it
involves, among other considerations, market, sovereign,
country, transfer, delivery, credit, and counterparty
risk. |
|
Risk Position |
An asset or liability that is exposed to fluctuations in
value through changes in exchange rates or interest rates. |
|
Required Margin |
A sum equal to the greater of the Initial Margin
Requirement or the Initial Margin Requirement minus
Unrealized Losses and storage, plus Unrealized Gains,
provided it is not less than 30% of the Initial Margin
Required. |
|
Risk Capital |
The amount of money that an individual can afford to
invest, which, if lost, would not affect his/her
lifestyle. |
|
Round trip |
Buying and selling of a specified amount of currency. |
|
Rally: |
A recovery in price after a period of decline. |
|
Range: |
The difference between the highest and lowest price of a
future recorded during a given trading session. |
|
Rate: |
(1) The price of one currency in terms of another,
normally against USD, (2) Assesment of the credit
worthiness of an institution. |
|
Ratio Spread: |
Buying a specific quantity of options and selling a larger
quantity of out of the money options. |
|
Ratio Calendar spread: |
Selling more near-term options than longer maturity
options at the same strike price |
|
Reaction: |
A decline in prices following an advance. |
|
Real: |
A price, interest rate or statistic that has been adjusted
to eliminate the effect of inflation. |
|
Realignment: |
Simultaneous and mutually coordinated re- and devaluation
of the currencies of several countries. An activity that
mostly refers to EMS activity. |
|
Recession: |
A decline in business activity. Often defined as two
consecutive quarters with a real fall in GNP. |
|
Reciprocal currency: |
A currency that is normally quoted as dollars per unit of
currency rather than the normal quote method of units of
currency per dollar. Sterling is the most common example. |
|
Regular way settlement: |
Next market day after trade date. US term. |
|
Reinvestment rate: |
The rate at which interest earned on a loan can be
reinvested. The rate may not attract the same level of
interest as the principal amount. |
|
Reopening: |
Making a tap or further issue on an existing bond. |
|
Report: |
French term for premium. |
|
Reporting Dealer: |
Term for US Primary Dealers |
|
Repo rate: |
See Repurchase Agreement. |
|
Repurchase Agreement: |
Agreements by a borrower where they sell securities with a
commitment to repurchase them at the same rate with a
specified interest rate. |
|
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 conververtible 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. |
|
Reserve requirement: |
The ratio of reserves to deposits, expressed as a fraction
prescribed by national banking authorities including USA.. |
|
Reserve Tranche: |
The 25% of its quota to which a member of the IMF has
unconditional access, and for which there is no obligation
to repay. |
|
Resistance Point or Level: |
A price recognised by technical analysts as a price which
is likely to result in a rebound but if broken through is
likely to result in a significant price movement. |
|
Rescheduling: |
The re-negotiation of the terms of existing debts. The
term is usually used with reference to LDC debt. The term
rescheduling is considered to be refinancing to avoid any
implication of default. Major sovereign debt rescheduling
for Brazil, and Mexico hav |
|
Retail Price Index: |
Measurement of the monthly change in the average level of
prices at retail, normally of a defined group of goods. |
|
Retractable Bond: |
See extendible bond |
|
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. |
|
Reversal: |
Process of changing a call into a put. |
|
Reversal arbitrage: |
Selling an asset short writing a put and buying a call on
the asset with the same terms. |
|
Revaluation: |
Increase in the exchange rate of a currency as a result of
official action. |
|
Revaluation rate: |
The rate for any period or currency which is used to
revalue a position or book. |
|
Revolving credit: |
Upon repayment by the borrower the credit becomes
automatically available. |
|
Right hand side: |
To do a deal on the right hand side of a two way quote,
normally to buy the currency and sell dollars. See Left
hand side. |
|
Ring: |
An area on a trading floor where futures or equities are
traded. |
|
Risk factor: |
The risk factor (delta) indicates the risk of an option
position relative to that of the related futures contract. |
|
Risk management: |
The identification and acceptance or offsetting of the
risks threatening the profitability or existence of an
organization. With respect to foreign exchange involves
among others consideration of market, sovereign, country,
transfer, delivery, credit, and |
|
Risk Position: |
An asset or liability, which is exposed to fluctuations in
value through changes in exchange rates or interest rates. |
|
Risk Premium: |
Additional sum payable or return to compensate a party for
adopting a particular risk. |
|
Risk reversal: |
A combination of purchasing put options with the sale of
call options. The put limits downside, while the ccall
limits the upside. |
|
Rolling over: |
The substituting of a far option for a near option of the
same underlying stock at the same strike/exercise price. |
|
Rollover: |
An overnight swap, specifically the next business day
against the following business day (also called Tomorrow
Next, abbreviated to Tom-Next) |
|
Rollover credit: |
Medium term credit with a variable interest rate, which is
governed by the currently prevailing rates on the
Euromarket. |
|
Round lot: |
The minimum quantity acceptable for dealing. |
|
Round trip: |
Buying and selling of a futures or options contract. |
|
Round tripping: |
When a non financial company can borrow at lower than
current short term rates and therefore can borrow and on
lend at a profit. |
|
RT: |
Standard Reuter Terminal for quote display. |
|
Running a position: |
Keeping open positions in the hope of a speculative gain. |
