Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.

The industry’s
most important terms explained.

Discover a wealth of financial terms and definitions that every trader should know.

Forex Glossary

R

Round trip

Buying and selling of a specified amount of currency.

Roll-Over

A rollover is the interest paid or earned on an open position held past the close of the NY trading at 1700 ET reflecting the interest rate differential between the two currencies. The spot forex market is traded on a two-day value date. For example, for trades executed on Monday, the value date is Wednesday. However, if a position is opened on Monday and held overnight (remains open after 1700 ET), the value date is now Thursday. The exception is a position opened and held overnight on Wednesday. The normal value date would be Saturday; because banks are closed on Saturday the value date is actually the following Monday. Due to the weekend, positions held overnight on Wednesday incur or earn an extra two days of interest. Trades with a value date that falls on a holiday will also incur or earn additional interest.

Risk Management

The employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.

Risk

Exposure to uncertain change, most often used with a negative connotation of adverse change.

Revaluation

An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.

Retail Sales

Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of variety of different types and sizes. This data gives a look into consumer spending behavior, which is a key determinant of growth in all major economies.

Resistance

A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.

Rate

The price of one currency in terms of another, typically used for dealing purposes.

Range

The difference between the highest and lowest price of a future recorded during a given trading session.

Rally

A recovery in price after a period of decline.