Real Effective
Exchange Rate - REER : It
is the weighted average of a currency relative to an index or basket of other
major currencies adjusted for inflation. The weights are determined by
comparing the relative trade balances with each other country within the
index.
Real Time Forex
Trading: A type of speculation
made by the traders in the forex markets. The traders bet on the movement
in the exchange rates of forex currency pairs.
Reciprocal Currency: A currency pair in which USD
represents the quote currency. For example - NZD/USD, GBPUSD and so on.
Redenomination: A process where a country's
currency is recalibrated. It is done by the country’s government or the central
bank due to significant changes in inflation and currency devaluation.
Repatriation:
It is the process of converting a foreign currency into the currency
of one's own country. The investors would be exposed to foreign exchange risk
during conversion and the amount they receive depends on the exchange rate between
the two currencies being traded at the settlement time.
Retail Foreign
Exchange Dealer – RFED: An
individual or organization acting as counterparty to foreign currency transactions
where buying and selling of financial instruments does not involve any of the
exchanges.
Revaluation: It is an adjustment made to a
country's official exchange rate relative to a chosen baseline. The
baseline can be anything from wage rates to the price of gold. In
a fixed exchange rate regime, only a decision by a country's government or the central
bank can alter the official value of the currency.
Revaluation Rates: Market currency rates that are used as
a base value by currency traders. It is used to assess profit or loss
realized for the day.
Right
Hand Side - RHS: It is the offer price of a currency
pair.
Rollover Credit: It is the interest a forex trader receives
on the positions held overnight due to the difference between daily interest
rates of the currencies being traded.
Rollover Debit: It is the loss on the positions held
overnight due to the difference between daily interest rates of the currencies
being traded.
Rollover Rate (Forex): It is the net interest
return on a currency position held by a trader. A trader is long in
one currency and short in another, the net effect of both the interest rates is
calculated. It converts net currency interest rates into a cash return for the
position. The rollover indicates that the position is held overnight. If the
interest earned on the loaned currency is lower than the interest paid on the
borrowed currency, the trader will have a rollover debit and vice versa.