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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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R

Relative Strength Index (RSI)

A technical indicator, used to analyse the momentum of the price of a security.

Resistance

A level on a price chart at which selling pressure is expected to outweigh buying pressure, resulting in a potential reversal in price movement.

Retail trader

A trader who uses their own funds to participate in the markets, rather than on behalf of an institution.

Retracement

A temporary reversal in the direction of a product’s price movement within a larger trend.

Return

The overall gains from an investment.

Return on equity (ROE)

A financial ratio that evaluates the profitability of a company based on the equity invested in it.

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