Trading Glossary

Rally

Refers to the price after a period of decline, began to resume rising. There are two kinds of price rebounds, one is that the price shock begins to rebound after consolidation, and the other is a rapid rebound after the price falls sharply. The strength of the rally will generally be more like the length of time of consolidation or the magnitude of the price decline.

Rate of Change

One of the classic technical indicators. The size of the change rate is reflected by the price of the financial asset by comparing the price of the day with the price of a certain day before a certain number of days. In an uptrend, Roc will show positive numbers and accelerate as the trend develops, that is, the numbers continue to rise; Conversely, in a downtrend, the ROC will show a negative number and accelerate as the trend develops, that is, the number continues to decline.  

Recession

Refers to the poor performance of the economy over a period of time. There is no precise definition of a recession, and two or more consecutive quarters of GDP growth decline are generally referred to as recessions. Recessions also need to take into account other factors, such as industrial output, consumer confidence, employment data, and so on. 

Referendum

Refers to the fact that all citizens of a country decide a political decision by voting, generally using the principle of majority. For example, Brexit, Greek debt referendum and so on. 

Regional Comprehensive Economic Partnership

Initiated by the Association of Southeast Asian Nations ten countries, China, Japan, South Korea, Australia, New Zealand and other five countries with the ASEAN free trade agreement jointly participated. A total of 15 parties constituted by the high-level free trade agreement. The agreement is also open to other external economies, such as the countries of Central Asia, South Asia and other countries in Oceania. The purpose of the RCEP is to establish a one-market free trade agreement by reducing tariff and non-tariff barriers.  

Relative Strength Index

A commonly used technical indicator that reflects the strength of bulls and bears in the market and is used to evaluate whether the price is overheated (overbought) or too cold (oversold). The indicator is divided into three areas from 0-100,  the overbought area above 70, the oversold area below 30 and the central area in the middle. 

Relative Vigor Index

A volatile technical indicator that describes the current vitality or energy of the market. Divide the difference between the closing and opening prices by the difference between the highest and lowest prices to reflect whether the price is in a bull market or a bear market. Generally, the higher the relative vitality indicator, the more it indicates that the market is in a bull market, and vice versa. 

Request For Market

When the customer does not want the counterparty (bank) to know that he wants to buy or sell, he will often ask the bank to provide a two-way quotation, that is, the bid price and the sell price, so that he can hide his true intentions and avoid being eaten by the counterparty.  

Reserve Bank of Australia

The Central Bank and Currency Issuing Agency of the Commonwealth of Australia was established on 1 4 January 1960. Its main responsibilities are to maintain monetary stability, full employment, economic prosperity and the well-being of the people. 

Reserve Bank of New Zealand

New Zealand's Central Bank was established in 1934. It has the primary function of enabling New Zealand to implement monetary policy and maintain price stability in both the domestic and international economies; Establish and maintain a reasonable and effective financial order; Meet the public's requirements for the circulation of money.  

Resistance

Generally refers to the financial asset price rise to a certain position will encounter selling pressure, which is generally determined by market supply and demand, when the price comes to the resistance position, the seller's desire to sell in the market is higher than the buyer's desire to buy, so the price will be pushed down. 

Retail Investor

Generally, the financial service sector are divided into two types, institutional investors and retail investors. Retail investors generally refer to independent investors and are sometimes referred to as retail investors. Investments or transactions are usually made as personal property. Retail investors have a wide variety of players and the market is huge. Compared to institutional investors, they are not so sensitive to transaction costs. 

Retail Sales

One of the most important economic indicators in the United States. Since 70% of the US GDP comes from consumption, and 40% of the consumption comes from retail sales, it shows its importance in predicting the US economy. 

Retail Trader

It refers to investors who hold a small amount of funds, mostly individual investors. The general retail investor is characterized by the fact that trading is not planned and is easily affected by market sentiment and goes with the flow. 

Retracement

Refers to the price after a sharp rise or fall in the price, the price shows a reverse change. In the financial market, the rise and fall of the price will not always be unilateral, or always be profitable. and then the price will form a reverse fluctuation. However, this reverse fluctuation does not reverse the price trend, we refer to this fluctuation as a correction. 

Revaluation

Revalue

Generally refers to the revaluation of the price of an asset, commonly seen in accounting for the revaluation of the actual value of a business asset, as well as the revaluation of the value of foreign exchange currencies. Revaluations are often held on a regular basis, or when the external market environment changes dramatically, such as fixed exchange rate policies, such as the U.S. departure from the Bretton Woods system, requiring a revaluation of assets and currencies. 

Reversal

Refers to the process by which the price of a commodity changes from rising to falling, or from falling to rising. In financial markets, price reversals are generally not achieved overnight, and there are often reversal signals, such as a double top, divergence, and a number of reversal candlestick patterns.

Reward-To-Risk Ratio

Generally refers to one of the bases on which a trader/investor considers whether or not to enter a market, which refers to how many units of remuneration can be potentially obtained for each unit of risk.  The higher the risk-reward ratio, the more likely it is for a trader/investor to enter the market to invest.  However, in the practice of trading, the risk-reward ratio often has an inverse relationship with the winning rate.  The higher the risk-reward ratio is set, the more difficult it is to achieve the actual profit target, and conversely, the lower the risk-reward ratio is set, the higher the trader/investor's win rate in general.  

Ripple

One of the mainstream cryptocurrencies. Ripple's purpose is to build a blockchain payment solution for global enterprises, allowing people to use the Ripple platform for real-time payments around the world. 

Rising Three Methods

One of the ascending patterns of technical analysis, often considered a relay pattern. It is characterized by the price trend after a period of rise, followed by a long red line, and then the emergence of three small entities of the yin line, the three yin line of the high and low range is located in the trading range of the first long red line, followed by a strong constant rainbow line, while the closing price is higher than the closing price of the first long red line, after this situation, the price tends to maintain the probability of upward development. 

Rising Wedge

One of the chart patterns commonly used by chart analysts or technical analysts is the bearish pattern, which is often formed after a large downward trend and is constructed by two uptrend lines that will eventually intersect. Technical analysts tend to break through the lower ascending trend line and enter the market short when the volume gradually declines, and the stop loss can be set at the high level of the rising wedge resistance line.  

Risk

Refers to losses that may be incurred in a position (trading or investment) in a financial instrument.  

Risk Appetite

Used to describe the risk behavior and willingness of financial market participants (investors or traders or the market as a whole), representing the level of risk that participants have or want to take. The higher the risk appetite, the greater the risk that market participants are willing to take. Markets with a high degree of risk appetite are generally defined as greed; Markets with a low degree of risk appetite are defined as fear. 

Risk Appetite

The level of risk that a trader is willing to take if he wants to reach a specific performance goal. Generally speaking, after the overall market prosperity, the risk appetite of traders is often increased by the comprehensive influence of many factors such as market environment and human nature; When the market slowly turns into a depression, the degree of risk appetite will obviously continue to decline due to poor market sentiment and falling asset prices. 

Risk Aversion

It refers to investors who believe that the future environment of the market is becoming more and more uncertain, and it is expected that there will be huge fluctuations in the future, so they begin to get rid of risky assets and turn into a safe-haven asset mentality. 

Risk Capital

The amount that the investors are willing to bear as a loss when trading. For example, if an investor has $1 million and decides to close his investment account and no longer invest when he loses 10%, then $100,000 is the trader's venture capital.  

Risk Control

In financial market trading, risk control is an important part, especially in leveraged trading. Risk is managed by trading volume, take profit and stop loss, hedging, diversification combination, etc. 

Risk Exposure

Represents the maximum exposure to price movement risk in a position held by an investor. For example, buy value 10000The S&P index of the US dollar has a risk exposure of 10000Long positions in USD; If the S&P falls, investors will have to bear the loss, and the maximum loss is 10000Dollar. If leveraged products are used, the exposure will be expanded accordingly. 

Risk Off

An adjective for how investors feel at risk in the current market environment. Investors tend to feel pessimistic and desperate in the face of successive market declines, ignore potential bullish news, and then sell risk assets and buy safe-haven assets such as gold and the Yen, which is called risk aversion. 

Risk On

An adjective for how investors feel at risk in the current market environment. Investors often lose their guard against the possible decline in the bull market, and then allocate more funds to high-risk assets, which is called risk hobby. 

Risk On, Risk Off

This term is mainly used to describe the investment mood in which the risk tolerance of investors and traders switches with the fluctuations of market. When there is a major international event, such as a war, investors are likely to switch from risk-averse to risk-averse emotions overnight.  

ROE

One way of calculating the return on investment is to divide the net interest rate by the shareholder's share capital, which refers to the accounting book share capital, that is, the initial shareholder input. Return on equity can reflect the company's earnings growth, which is more reflective of returns to shareholders than ROA, taking into account capital structure considerations. ROE is often used to value stock prices as a discounted rate of return. 

ROI

Divide the net return/profit by a percentage or percentage of total cost/expense that reflects the profitability or efficiency of a particular investment. ROI can be used to compare performance or expectations between different investment projects or portfolios. When companies evaluate projects, ROI is often used to determine whether the project meets the investment income target. ROI is also used to assess the company's overall returns, although it is important to note that total costs/expenses include shareholders' equity and borrowed capital. 

Rookie trading mistakes 

When you're a rookie trader, you're just learning the ropes and there are a lot of things you don't know. Some of the beginner mistakes you could make include: You're not following a proven trading plan. You're not using the right tools or software to stay in control. You're not using risk management to protect your capital You rely on tips, punts or rumours for your entry ideas. You have no consistent exit criteria to get out of losing positions or in a profit.

Russian Rubles

The legal tender of Russia, the currency symbol is RUB, it is issued by the Central Bank of the Russian Federation.