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Terms beginnings with 'R'
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Rally
A period of rising prices in the market. -
Range
The distance between the high point and low point of the market in a set period of time, typically within one day. -
Rate of change (ROC)
A technical indicator for measuring the price change (in percentage points) between the current price and the price a certain number of periods ago. It is calculated by dividing the current price by the price at the chosen period and then subtracting one from the result. The formula for ROC is:
ROC = [(Current Price / Price N time ago) – 1] x 100%
ROC commonly identifies trends and potential reversals in a security's price movements. Traders and investors use ROC to determine whether a security is overbought or oversold and to make trading decisions based on the expected direction of a security's price movement. -
Real account
Is an account that allows to place orders in the real market and requires a deposit to be able to do so, unlike a demo account. -
Realised profit
Profit after closing a position. -
Rebate
Is a return of a certain part of the commission an IB received from client's trading paid on a regular basis. -
Rebate calculator
Is the tool that allows an IB to calculate the amount he or she should pay to his referral as rebate. -
Regulated market
A market where a government body monitors and regulates the industry to protect investors. -
Regulation
As the Forex market is decentralised, there are several governmental and independent supervisory bodies around the world that regulate the market. They set rules and standards for foreign exchange brokers, IBs and signal sellers to ensure fair and ethical business behaviour. Octa acts in full compliance with international legislation and regulation standards and guarantees funds security and negative balance protection to their clients. -
Relative strength index (RSI)
A technical analysis indicator measuring momentum by comparing recent gains to losses of the underlying asset to determine an overbought or oversold condition. It is typically calculated for a period over 14 days. RSI is expressed as a value between 0 and 100, with values above 70 indicating overbought conditions and below 30 indicating oversold conditions. Traders use RSI to identify potential trend reversals, confirm price movements, and generate buy or sell signals. -
Requote
Is a situation when a Market Maker, unable or unwilling to fill an order at the price requested by the client, sets an execution delay and returns the request with a different quote, often less favourable for the client. Brokers that operate under market execution have no requotes and always fill the order at the best available market rate. -
Reserve bank of India (RBI)
The central bank of India. -
Reserve bank of New Zealand (RBNZ)
The central bank of New Zealand. -
Reserve currency
A foreign currency held by central banks to pay off international debt obligations or to influence their domestic exchange rate. The two most dominant reserve currencies are the U.S. dollar and the euro. (Also Anchor Currency) -
Resistance (Level)
Is the price level where a trading instrument tends to find resistance as it is increasing and is more likely to to stop and reverse. -
Retail sales data
An economic indicator that measures monthly in-store and catalog sales. It's part of the GDP measurement but is also used to gauge the spending sentiment in the economy. -
Reversal
Is the change in the direction of price trend. -
Rising wedge
Is a bearish chart pattern formed by two ascending trend lines indicating whether downward trend is about to reverse or to continue. -
Risk capital
The funds allocated to speculative activity and used for highly risky but highly rewarding investments. It includes any money or assets exposed to a possible loss in value, but the term is often reserved for those funds earmarked for highly speculative investments.
Diversification is critical for the successful investment of risk capital since the prospects of each investment tend to be uncertain by nature. However, the returns can be far above average when an investment succeeds. An investor must ensure that only a portion of the total capital is considered risk capital. -
Risk management
The process of identifying, analysing, accepting, or mitigating uncertainty in investment decisions. It occurs when an investor or a fund manager tries to calculate potential losses of an investment and then takes the appropriate action given the fund's investment objectives and risk tolerance. -
Risk-return tradeoff
A principle that states that potential returns increase with an increase in risk. Investments that carry a higher degree of uncertainty or risk are associated with higher returns, while investments with lower risk are associated with lower returns. In simpler terms, the Risk-Return Tradeoff suggests that an investor can only earn higher profits if willing to accept the possibility of losses. Therefore, investors must evaluate how much risk they are willing to take to achieve their desired return on investment. -
Round-trip trading
An unethical practice in the stock market that involves buying and selling shares of the same security repeatedly to manipulate others into believing that the security is in higher demand than it really is. This act creates fake trading volume, which can interfere with technical analysis based on volume data. However, this behaviour differs from day traders' or ordinary investors' legal open and close transactions. Every investor ultimately completes a round trip when they buy and later sell a security. Also known as round-tripping. -
Royal bank of Australia (RBA)
The central bank of Australia. Meets every first Tuesday of the month to deliver interest rate statements. -
RUB
The currency code for the Russian ruble.
