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Ratio spread

An option strategy whereby the amount of futures or options contracts purchased is not equal to the amount of contracts sold.

 

Ratio backspread

Option strategy which involves two short calls (puts) and one long call (put).

 

Real-time prices

Up-to-date market prices for traded contracts.

 

Recognised Clearing Houses (RCH)

Authorised by the SIB to carry out clearing functions. See SIB.

 

Recognised Investment Exchanges (RIE)

An Exchange which is deemed to be carrying on investment business authorised by the FSA.. RIE's develop their own means of fulfilling their regulatory objectives and obligations.

 

Recognised LIFFE Option Strategies

A listing of recognised option strategies developed by LIFFE for use on its exchange, primarily for charging purposes. All the components of the strategy must be executed by one transaction between counterparties in the options pit. All components of the strategy must be for one account only.

 

Repurchase agreement

Borrowing funds by providing a government security for collateral and promising to 'repurchase' the security at the end of the agreed upon time period. The associated interest rate is the 'repo rate'.

 

Rollover

The transfer of a futures or options position from one delivery month to a later month.

 

Round trip

A futures or options position plus its offsetting position. (Commissions are usually quoted per round trip.)