Finance

Category: R

  • Riding the Yield Curve

    Concept of Riding the Yield Curve in Futures TradingIn this context of financial law, the following is a definition of Riding the Yield Curve: Trading in an interest rate futures contract according to the expectations of change in the yield curve.

  • Resistance

    Concept of Resistance in Futures TradingIn this context of financial law, the following is a definition of Resistance: In technical analysis, a price area where new selling will emerge to dampen a continued rise. See Support.

  • Ratio Spread

    Concept of Ratio Spread in Futures TradingIn this context of financial law, the following is a definition of Ratio Spread: This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike […]

  • Reference Obligation

    Concept of Reference Obligation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A bond, loan or other payment obligation, issued by the reference entity. The failure by the reference entity to comply with the material terms of a reference […]

  • Retender

    Concept of Retender in Futures TradingIn this context of financial law, the following is a definition of Retender: In specific circumstances, some exchanges permit holders of futures contracts who have received a delivery notice through the clearing organization to sell a futures contract and […]

  • Range

    Concept of Range in Futures TradingIn this context of financial law, the following is a definition of Range: The difference between the high and low price of a commodity, futures, or option contract during a given period.

  • Round Turn

    Concept of Round Turn in Futures TradingIn this context of financial law, the following is a definition of Round Turn: A completed transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.

  • Reversal

    Concept of Reversal in Futures TradingIn this context of financial law, the following is a definition of Reversal: A change of direction in prices. See Reverse Conversion.

  • Round Lot

    Concept of Round Lot in Futures TradingIn this context of financial law, the following is a definition of Round Lot: A quantity of a commodity equal in size to the corresponding futures contract for the commodity. See Even Lot.

  • Ratio Hedge

    Concept of Ratio Hedge in Futures TradingIn this context of financial law, the following is a definition of Ratio Hedge: The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is neutral or delta neutral.

  • Real-Time Reporting

    Concept of Real-Time Reporting in Futures TradingIn this context of financial law, the following is a definition of Real-Time Reporting: The reporting of basic data on most swaps transactions (including price and volume to swap data repositories in real time, as required under the Commodity […]

  • Reverse Floater

    Concept of Reverse Floater in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate swap (i.e. an agreement to exchange interest rate cash flows) where the floating rate has a coupon which rises when the underlying floating rate […]

  • Risk Reversal

    Concept of Risk Reversal in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A strategy, such as an interest rate collar, whereby a party wishing to limit the potential downside of holding a long position in an underlying buys an out of the […]

  • Restructuring

    Concept of Restructuring in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event triggered when a reference entity restructures its debt in agreement with its creditors.ResourcesSee AlsoDerivatives Contract

  • Risk Ratio

    Concept of Risk/Reward Ratio in Futures TradingIn this context of financial law, the following is a definition of Risk/Reward Ratio: The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison.