Glossary - R

RATE
Rate or quote, is the price of one currency in terms of another.
 
RELATIVE DRAWDOWN
This is the largest loss in percent from the maximal value of equity.
 
REPURCHASE AGREEMENT (REPO)
A repurchase agreement also known as a repo, is the lending of securities together with an agreement for the borrower to return the securities at a later date at a predetermined rate of interest. This rate of interest is also known as the repo rate. The party that takes in the securities effectively acts as a lender of money. The  owner of the securities is acting as a borrower of that money using their security as collateral for a secured cash loan at a fixed rate of interest.
 
RESERVE RATIO REQUIREMENT
The portion (expressed as a percent) of depositors' balances banks must have on hand as cash. This is a requirement determined by the country's central bank. The reserve ratio affects the money supply in a country.
 
RESISTANCE
Term used to describe the top of a trading range.
 
RETAIL INVESTORS
A retail investor is an individual investor investing in the financial markets for financial gain.
 
REVERSAL
A change in the direction of a price trend. On a price chart, reversals undergo a recognizable change in the price structure. An uptrend, which is a series of higher highs and higher lows, reverses into a downtrend by changing to a series of lower highs and lower lows.
 
RISK CAPITAL
The amount of money that a trader can afford to risk, the potential loss of which would not affect their lifestyle.
 
ROLLING SPOT PRICE
Cash price of the financial product or FX as opposed to its Future's price. The position is 'rolled over' at the end of the trading day.
 
ROLL-OVER
When a trade is approaching expiry it is closed in the expiring month and opened in the following month.