Forex Glossary


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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.