Trading Dictionary

139+ Trading Terms Explained

Plain-English definitions for active traders - from order types and chart patterns to options Greeks and trader slang.

R
R-Multiple
Performance Metrics

R-multiple is a way to measure trade outcomes in units of initial risk — a 2R trade means you made twice your initial risk as profit, a -1R

Range
Market Basics

A range (or trading range) is a price zone where a stock oscillates between a defined support floor and resistance ceiling without making me

Rate Cut
Macro & News

A rate cut is when the Federal Reserve lowers its benchmark federal funds rate target, which reduces borrowing costs throughout the economy

Rate Hike
Macro & News

A rate hike is when the Federal Reserve raises its benchmark federal funds rate target, increasing borrowing costs across the economy to slo

Relative Strength Index
Technical Analysis

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes on a 0–100 scale —

Relative Volume
Market Basics

Relative volume (RVOL) compares a stock's current trading volume to its average volume for the same time of day, expressed as a multiple — a

Resistance
Market Basics

Resistance is a price level where selling pressure has historically overcome buying pressure, causing price to stall, reverse, or consolidat

Revenge Trading
Trading Psychology

Revenge trading is the impulsive act of placing new trades immediately after a loss — or multiple losses — in an attempt to quickly recover

Risk Per Trade
Risk & Money Management

Risk per trade is the maximum dollar amount you're willing to lose on a single position if your stop is hit — typically expressed as a perce

Risk-Reward Ratio
Risk & Money Management

The risk-reward ratio compares the potential profit of a trade to the maximum loss if the stop is hit — a 3:1 risk-reward means you stand to

Rug Pull
Trader Slang

A rug pull is when insiders, promoters, or large holders of a low-float stock or cryptocurrency suddenly sell all of their holdings into ret