Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
-
Getting Started
-
Platforms
-
Products
-
Learn
-
Analysis
-
Academy
-
Trading
-
Education
-
Learn
-
Analysis
-
Academy
-
-
Promotions
-
Company
-
About
-
Corporate
-
Partnership
-
Languages
-
简体中文
Simplified Chinese
-
한국어
Korean
-
Melayu
Malay
-
Việt
Vietnamese
-
ภาษาไทย
Thai
-
Indonesian
Indonesian
-
العربية
Arabic
-
日本語
Japanese
-
繁體中文
Traditional Chinese
-
Français
French
-
Español
Spanish
-
Português
Portuguese
-
Deutsch
German
-
فارسی
Persian
-
Italiano
Italian
-
Русский язык
Russian
-
Türkçe
Turkish
-
Polski
Polish
-
हिंदी
Hindi
-
Dutch
Nederlands
Trading Glossary
Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.
R
Revaluation
A change in the exchange rate of a currency relative to other currencies or a benchmark.
Reversal
A change in the direction of a product’s price movement.
Reverse Repo (RRP)
A reverse repo is a repo seen from the other side, the lending end. Where a repo is borrowing cash against securities, a reverse repo is handing over cash and taking in securities as collateral, earning a small return for parking money safely and briefly.
Central banks use reverse repos as a policy tool: by offering to take in cash overnight at a set rate, they put a floor under short-term interest rates.
Example: When the US financial system is flooded with cash and money-market funds have nowhere good to put it, they lend it to the Federal Reserve overnight through its reverse repo facility, receiving Treasuries as collateral and a set rate in return. Because they always have this safe option, they will not lend to anyone else for less, so the reverse repo rate effectively stops overnight market rates from sinking below the Fed’s floor, one of the quiet mechanisms that keeps policy rates where the central bank prefers
Reward-To-Risk Ratio (RRR)
The reward-to-risk ratio measures how much you stand to gain on a trade against how much you are risking to get it. Work out the distance from your entry to your profit target, compare it to the distance from your entry to your stop-loss, and you get a ratio: a reward-to-risk of three to one means you are aiming to make three times what you are prepared to lose.
It is the yardstick disciplined traders use to decide whether a trade is even worth taking.
Example: A trader spots a setup where she can risk 100 dollars to a stop while targeting 300 dollars of profit, a three-to-one reward-to-risk ratio. She takes it because the potential reward is three times the amount risked, although the trade can still result in a loss. A trade offering only one-to-one, risking as much as it might make, she may choose to pass on, knowing that maintaining a favorable reward-to-risk balance can help inform risk management but does not guarantee overall profitability.
Rho
An indicator of how an option’s price responds to changes in the interest rate.
Richmond Fed Manufacturing Index
The Richmond Fed Manufacturing Index is a monthly gauge of factory activity in the Fifth Federal Reserve District, which covers Virginia, the Carolinas, Maryland, and nearby states. The Richmond Fed surveys manufacturers on new orders, shipments, employment, and other measures, then rolls their answers into a headline number where a reading above zero signals expansion and below zero contraction.
Traders treat it as one of several regional clues to the broader health of US manufacturing.
Example: The Richmond Fed index drops sharply into negative territory, hinting that factory activity in the mid-Atlantic region has turned down. Because it lands alongside the other regional Fed surveys and before the big national manufacturing data, analysts fold it into their picture of where US industry is heading, and a run of weak regional readings across Richmond, Philadelphia, and elsewhere can lower expectations for the national ISM report that ties them all together, sometimes moving markets before the headline number even arrives.
Start trading with A globally leading broker
Want to start trading?
We use cookies to understand how you use our website and to give you the best possible experience. You can find out more by viewing our Cookie Policy.