Forex Glossary (R)

Here are some terms that used in FOREX trading with series of R. Range The difference between the highest and lowest price of a future recorded during a given trading session.

Rate The price of one currency in terms of another. It has the same meaning as the term parities.

Recession A decline in business activity. Often defined as two consecutive quarters with a real fall in GNP.

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 the selling is expected to take place.

Retail Price Index Measurement of the monthly change in the average level of prices at retail, normally of a defined group of goods.

Reuter Dealing A system for screen based trading that has been in operation since the early 1980s. It now has a matching optional enhancement known as Dealing 2000-2.

Revaluation Increase in the exchange rate of a currency as a result of official action.

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.

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.

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