RALLY: This is a rise in the price of a security or in the entire market.

RANGE: This is the high and low prices of a security at a specific time during the trading day. 

RATIO SPREAD: An option strategy composed of an unequal number of calls or puts, with long and short options at two different strike prices. 

REACTION: The typical descending movement in the price of a security after the price as a whole had previously risen. 

REALIZED GAINS OR LOSSES: This is the profit or loss that is acquired to an account when a closing trade of a security corresponds with an open position in the same security.

RECORD DATE (DATE OF RECORD): The date established by someone who is registered as an issuer of a security in order to receive an affirmed dividend. 

REGISTERED OPTIONS PRINCIPAL(ROP): This is an employee at a brokerage firm who has passed the FINRA Series 4 exam, and is responsible for overseeing activities dealing with different securities in an investor's accounts. 

REGISTERED REPRESENTATIVE: This is an employee of a brokerage firm who is licensed to sell securities and also has the legal power of an agent. This registered representative has also passed the Series 7 and Series 63 examination. 

REGULATION T (REG T): This is a regulation that is established by the Federal Reserve Board. The Regulation T governs customer cash accounts and the amount of credit by which brokers and dealers can give to customers to purchase securities.

REHYPOTHECATION: This is the practice of pledging securities in a customer's margin account as collateral for a bank loan. 

REJECTED ORDER: This is an order that is not carried out due to it being invalid in some way.

RESTRICTED ACCOUNT: This is a margin account which has less equity than is required by the Regulation T. 

RETAIL AUTOMATIC EXECUTION SYSTEM (RAES): Used by retail customers who need to execute option market and limit orders on the CBOE through the exchange's ORS. 

REVERSAL (MARKET REVERSAL): A change in a market's general direction in which the price movement stops and goes in the opposite direction.

REVERSAL (REVERSE CONVERSION): A Method used by a brokerage, which can allow them to earn interest on its customers' stock by selling a similar position short and investing the proceeds of that position The short position is sometimes used to hedge in order to protect against risk from, the market. 

REVERSE SPLIT: A stock split in which the number of outstanding shares is reduced and thus increasing the price per share. This is usually used during times in which a stock's price is falling. 

RHO: This is an estimate of the dollar change in a given option's price due to a typical 1% change in interest rates. 

ROLL, THE: An option strategy in which the goal is to profit from two positions composed of both calls and puts. The options all have the same strike price on the same stock, but on two different expiration dates. 

ROLL, TO: This is when an investor decides to change an option's position by closing out an existing position and opening a new position on the same stock, but with a different expiration date or strike price.

ROUND LOT: This is a normal quantity of trading of a security. For example, in U.S. equities, a round lot is 5 bonds or 100 shares of stock.

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