Terms starting with R
56 terms · page 3 of 3
Risk-Reward Ratio
Risk & Portfolio Management
ratio (x, times)
The ratio of a position's intended gain to the loss that would be taken if the thesis fails.
Risk-Reward Ratio = (Target Price - Entry Price) / (Entry Price - Stop Price)
Risk-Seeking Behaviour
Market Psychology & Behavioural Finance
qualitative
Preferring an uncertain outcome to a certain one of the same expected value, typically when facing losses.
Test: the gamble is preferred to a certain outcome of equal or higher expected value, usually in the loss domain
Riskometer
Funds, ETFs & Index Investing
qualitative
SEBI's mandated six-level graphic indicating a mutual fund scheme's risk, disclosed monthly.
Levels: Low, Low to Moderate, Moderate, Moderately High, High, Very High, computed from the portfolio's own risk characteristics
Rolling Settlement
Orders, Execution & Market Structure
qualitative
A system in which every trading day is a separate settlement cycle, so trades settle a fixed number of days after execution.
Test: each trade date has its own settlement date; there is no fixed weekly or fortnightly settlement day
Rollover
Derivatives, Futures & Options
index points
Closing a derivative position in the expiring contract and opening the equivalent position in the next expiry.
Rollover Cost = Price of the Far Contract - Price of the Near Contract, per unit
Rounding Bottom
Technical Analysis & Chart Patterns
qualitative
A gradual, curved transition from decline to advance over an extended period, with no sharp low.
Test: successive lows form a shallow concave curve over many periods, with volume typically contracting into the base and expanding on the advance
Rupee Cost Averaging
Funds, ETFs & Index Investing
₹
The effect by which investing a fixed amount regularly buys more units when prices are low and fewer when they are high.
Average Cost per Unit = Total Amount Invested / Total Units Purchased
Rupee Depreciation
Economy, Macro & Market Cycles
%
A fall in the rupee's value against another currency, so more rupees are needed to buy the same foreign amount.
Depreciation % = (New Rate - Old Rate) / Old Rate x 100, quoted as rupees per unit of foreign currency