forex glossary ! (3)

Rally - A prompt rise in prices (quotations) in the market.
Random Walk - An economic theory that price movements in the commodity futures markets and in the securities markets are completely random in character (i.e., past prices are not a reliable indicator of future prices).
Range - The difference between the high and low price of a commodity during a given trading session, week, month, year, etc.
Rate - The price of one currency in terms of another, typically used for dealing purposes.
Ratio Hedge - The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is risk neutral.
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 price.
Reaction - The downward price movement tendency of a commodity after a price advance.
Receiver - A person appointed by the court to receive and preserve the property or funds that are the subject of litigation.
Recession - Decrease in business activity.
Revoke - To recall a power or authority previously conferred, or annul, repeal, rescind or cancel privileges or registration. In the case of Commodity Futures Trading Commission registration proceedings, to take away a previously granted registration.
Riding the Yield Curve - Trading in interest rate futures according to the expectations of change in the yield curve.
Ring - A circular area on the trading floor of an exchange where floor traders and floor brokers stand while executing futures trades.
Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change.
Risk Management - The employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
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.
Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest Forex rate differential of the two currencies.
Round Lot - A quantity of a commodity equal in size to the corresponding futures contract for the commodity.
Round Turn - A completed futures transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.
Runners - Messengers who rush orders received by phone clerks to brokers for execution in the pit.
TRO - See Temporary Restraining Order.
Technical Analysis - An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Technical Indicators - The mathematical formulas used for construction of auxiliary schedules, facilitating the analysis of the market.
Telemarketing - Use of the telephone to solicit or otherwise communicate with futures and options customers or potential customers.
Temporary Injunction - A prohibitive, equitable remedy issued by a court forbidding a person to commit some action that he is attempting to commit, or restraining him in the continuance of some action. It is intended to last only until a hearing can be held.
Temporary License - If certain conditions are met, an applicant for registration as an associated person, floor broker, floor trader or introducing broker may be granted a temporary license (TL) which allows them to conduct business in that capacity while the application is being considered.
Temporary Restraining Order (TRO) - Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party and without a hearing. It is intended to last only until a hearing can be held.
Tender - To give notice to the clearing house of the intention to initiate delivery of the physical commodity in satisfaction of the futures contract.
Tenderable Grades - Those grades of a commodity which have been officially approved by an exchange as deliverable in settlement of a futures contract.
Terminal Elevator - An elevator located at a point of greatest accumulation in the movement of agricultural products which stores the commodity or moves it to processors.
Trade Practice Action Type - A violation arising from the manner of execution of trades on the floor of an exchange but not including decorum or recordkeeping matters.
Traders - Generally people who trade for their own account or employees or institutions who trade for their employer's accounts.
Trading Advisor - See Commodity Trading Advisor.
Trading Ahead - A dual trader executes a trade for his personal account prior to executing an elected customer order.
Trading Limit - The maximum number of speculative futures contracts one can hold as determined by the CFTC and/or the exchange upon which the contract is traded. Also referred to as Position Limit.
Transaction Cost - The cost of buying or selling of financial instrument.
Transaction Date - The date on which a Forex market trading occurs.
Transfer Notice - A term used on some exchanges to describe a notice of delivery.
Transfer Trades - Entries made upon the books of futures commission merchants for the purpose of: (1) transferring existing trades from one account to another within the same office where no change in ownership is involved; (2) transferring existing trades from the books of one futures commission merchant to the books of another futures commission merchant where no change in ownership is involved. Also called Ex-Pit Transactions.
Transferable Option (or Contract) - A contract which permits a position in the option market to be offset by a transaction on the opposite side of the market in the same contract.
Treasury Bill - See U.S. Treasury Bill.
Treasury Bond - See U.S. Treasury Bond.
Treasury Note - See U.S. Treasury Note.
Treble Damages - An amount that is three times the actual losses, based upon a statute.
Trend - The tendency. Steady long-term movement of the price (Forex rate) in the market in the certain direction.
Trendline - In charting, a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called bullish; if down, it is called bearish.
Turnover - The total money value of all executed transactions in a given time period; volume.
Two-Way Price - When both a bid and offer Forex rate is quoted for a FX transaction.
Uncovered Option - A short call or put option position which is not covered by the purchase or sale of the underlying futures contract or physical commodity.
Underlying Futures Contract - The specific futures contract that the option conveys the right to buy (in case of a call) or sell (in the case of a put).
Up Front Fees - Fees charged to a pool or a managed account prior to commencement of trading for the pool or account.
Uptick - A new price quote at a price higher than the preceding quote.
Uptick Rule - In the U.S., a regulation whereby a security may not be sold short unless the last Forex market trading prior to the short sale was at a price lower than the price at which the short sale is executed.
US Prime Forex rate - The interest Forex rate at which US banks will lend to their prime corporate customers.
U.S. Treasury Bill - A short-term U.S. government debt instrument with an original maturity of one year or less. Bills are sold at a discount from par with the interest earned being the difference between the face value received at maturity and the price paid.
U.S. Treasury Bond - Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.U.S. Treasury Note - Government-debt security with a coupon and original maturity of one to 10 years
Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
Variable Price Limit - A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.
Variation Margin - Broker must request the funds from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements.
Versus Cash - A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as Against Actuals or Exchange for Physicals. See Exchange for Physical.
Vertical Spread - Buying and selling puts or calls of the same expiration month but having different strike prices.
Volatility (Vol) - A statistical measure of a market's price movements over time.
Volume - The number of purchases and sales of futures or options on futures contracts made during a specified period of time.
Warehouse Receipt - Document guaranteeing the existence and availability of a given quantity and quality of a commodity in storage; commonly used as the instrument of transfer of ownership in both cash and futures transactions.
Wash Sale - Transactions that give the appearance of purchases and sales but which are initiated without the intent to make a bona fide transaction and which generally do not result in any actual change in ownership. Such sales are prohibited by the Commodity Exchange Act.
Wash Trading - Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without resulting in a change in the trader's market position.
Whipsaw - Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Wire House - See Futures Commission Merchant.
Writer - The issuer, grantor, or maker of an option contract. See Option Seller.
Yard - Slang for a billion.
Yield - The income in the form of percent on the invested capital counted for the term of one year.
Yield Curve - A chart in which yield level is plotted on the vertical axis, and the term to maturity of debt instruments of similar creditworthiness is plotted on the horizontal axis.
Yield to Maturity - The rate of return an investor receives if a fixed-income security is held to maturity.