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Rally |
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An upward movement of prices. |
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Range |
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The difference between the highest and lowest prices recorded during a given trading session, week, month, year, etc. |
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Registered Commodity Representative (RCR) |
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An individual who is registered with the exchange(s) and the CFTC to solicit and handle commodity customer business for his firm. |
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Registered Security |
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A security which will pay the owner whose name appears (is registered) on the face of the certificate. Securities can be fully registered (principal and interest) or registered as to principal only (coupons are in bearer form). |
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Regression Analysis |
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A statistical technique used in modern stock portfolio analysis to compare returns on a particular stock or particular portfolio of stocks with the returns for a larger group of stocks or an index of stocks. The slope of the resulting regression line is called the Beta and it quantifies the stock's or the particular portfolio's sensitivity to systematic risk. |
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Regulations (CFTC) |
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The regulations adopted and enforced by the Commodity Futures Trading Commission in order to administer the Commodity Exchange Act. |
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Reparations |
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Compensation payable to a wronged party in a futures or options transaction. The term is used in conjunction with the Commodity Futures Trading Commission's customer claims procedure to recover civil damages. |
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Reportable Positions |
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The number of open contracts specified by the Commodity Futures Trading Commission at which one must begin reporting total positions by delivery month to the authorized exchange and/or the CFTC. |
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Regularity |
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Term used to describe a processing plant, warehouse, mill, vault or bank that satisfies exchange requirements in terms of financing, facilities, capacity and location, and has been approved as acceptable for delivery of commodities against futures contracts. |
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Regulated Commodities |
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Effective April, 1975, U.S. futures markets in all commodities became regulated under the Commodity Exchange Act as amended by the Commodity Futures Trading Act of 1974. Trading by U.S. citizens on foreign futures markets, such as London silver, is not regulated. |
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Reporting Limit, Reportable Position |
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The number of futures contracts, as determined by the Commodity Futures Trading Commission, above which one must report daily to the exchange and the CFTC with regard to the size of one's position by commodity, by delivery month, and by purpose of the trading. |
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Repurchase Agreements |
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The buying of securities with the understanding that these securities will be re-sold in the near future. This adds liquidity to the banking system which pressures short rates lower. |
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Retender |
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The right of holders of futures contracts who have been tendered a delivery notice through the clearinghouse to offer the notice for sale on the open market, liquidating their obligation to take delivery under the contract; applicable only to certain commodities and only within a specified period of time. |
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Resistance |
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A price level at which you would expect selling to take place. |
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Reverse Repurchase Agreements |
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The sale of securities with the understanding that these securities will be bought back from the original seller in the future. This drains liquidity from the banking system, creating downward pressure on short rates. Also referred to as Matched Sales. |
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Rich |
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Slang for a security that is relatively overpriced. |
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Rings |
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Trading arenas located on the floor of an exchange in which traders execute orders. Sometimes called Pits. |
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Risk |
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The degree of likelihood that a particular investment or speculative transaction will produce a loss due to uncertain and volatile price behavior. Systematic or market risk is the kind of risk that affects virtually all commodity. Unsystematic or firm-specific risk relates specifically to the commodity in question and has little influence on the price of commodity in general. |
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Rollover |
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Where the settlement of a deal is rolled forward to another value date based on the interest rate differential of the two currencies. |
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Round Lot |
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A quantity of a commodity equal in size to the corresponding futures contract for the commodity, as distinguished from Job Lot, which may be larger or smaller than the contract. |
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Round Ibm |
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The combination of an initiating purchase or sale of a futures contract and the offsetting sale or purchase of an equal number of futures contracts of the same delivery month. Commission fees for commodities transactions cover the round turn. |
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Rules (NFA) |
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The standards and requirements to which participants who are required to be Members of the National Futures Association must subscribe and conform. |
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Reversal Gap |
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Chart formation where the low of the day is above the previous day's range and the close is above the
day's open.
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Reversal Stop |
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An order to reverse position when a specific price is hit. |
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Round Lot |
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A unit of trading or a multiple thereof, generally consisting of 100 shares of stock.
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Russell 2000 |
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A small-capitalization stock index. It consists of the 2,000 smallest securities in the Russell 3000 ($RUT.X).
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