| Rally |
An upward movement of prices following a decline. The opposite of a reaction. |
| Range |
The difference between the highest and lowest price recorded during a given trading session, week, month, life of contract, or any given period. |
| Ratio Backspreads |
For a call ratio backspread, a strategy that consists of one short call with a lower strike price and more than one long call with a higher strike price; for a put ratio backspread, a strategy that consists of one short put with a higher strike price and more than one long put with a lower strike price. |
| Ratio Spread |
An option strategy where the number of long options purchased is less than the number of short options sold. In the case of a ratio call spread, the long call option has a lower strike price than the short call options. In the case of a ratio put spread, the long put option has a higher strike price than the short put options. Often referred to as a 1 x 2; 1 x 3; 2 x 3; etc. |
| Reaction |
A decline in prices following an advance. The opposite of a rally. |
| Reclaim |
An act carried out by a seller who has tendered a live cattle delivery certificate that the assigned buyer has retendered. A seller will do this to collect the retender fee. To reclaim, the original seller establishes a long position in the pit and submits a reclaim notice. If no one demands the certificate of delivery, the seller takes assignment of his own retendered certificate and collects the accrued retender fee, thus eliminating the delivery obligation. |
| Reference price |
The price of future contract used as "reference" e.g., for determining an opening price, starting an algorithm, or figuring into an index; is usually the settlement price or last closing price. |
| Reference Regular Trading Hours (RTH) Session |
For a contract's CME Globex trading hours on a given calendar day beginning after that contract's RTH session on that calendar day and ending no later than 4:00 p.m., Chicago time, on that same calendar day, the Reference Regular Trading Hours (RTH) Session is that contract's second-previous RTH session. For a contract's CME Globex trading hours beginning at or after 4:00 p.m., Chicago time, and ending no later than the start of that contract's next RTH session, the Reference Regular Trading Hours (RTH) Session is that contract's previous RTH session. |
| Registered Commodity Representative |
An individual who is engaged by a member and approved by the exchange to act as a sales representative for contracts, and who is subject to all exchange rules unless the context would preclude such interpretation. |
| Registered representative |
A person employed by, and soliciting business for, a commission house or futures commission merchant. |
| Regression |
Relapse to a less perfect or developed state. |
| Regular Trading Hours |
Those hours designated by the Board of Directors for pit trading for particular contracts on the exchange. |
| Regulated Electronic Device |
Any Electronic Device supplied to a specific member or clearing member by the Exchange that belongs to a class or category of Electronic Devices for which the Exchange has established terms and conditions of use. |
| Regulated Floor Device |
Any Regulated Electronic Device that has been authorized by the exchange for use at locations on the exchange trading floor and its environs. |
| Regulated Remote Device |
Any Regulated Electronic Device that has been authorized by the exchange for use at locations other than, or in addition to, the exchange trading floor and its environs. |
| Reporting levels |
The number of positions at or above that a firm must provide daily reports for a specific account to the Market Regulation Department. |
| Resistance line |
In technical analysis, a price area where new selling will emerge to dampen a continued rise. A price level at which there is enough sell pressure to keep prices from rising above that particular price level. |
| Retender |
An act that an assigned long may perform to avoid obligation to receive delivery of live cattle. To avoid obligation, the assigned long must establish a short position on the business day following assignment and pay a retender fee. |
| Retracement |
A price move in the opposite direction of a recent trend. |
| RF |
Radio Frequency. Refers to alternating current (AC) having characteristics such that, if the current is input to an antenna, an electromagnetic (EM) field is generated suitable for wireless broadcasting and/or communications. |
| RFQ (Request For Quote) |
When a flex option is executed, the process of clearing a flex option is done in a separate flex sub-system. Flex options are executable by submitting an RFQ to trading floor personnel. |
| Risk |
1- The possibility of loss. 2 - The dollar difference between the current price and the price at which the liquidation of open positions would occur. 3- The portion of the performance bond requirement associated with the likely worst case change in value from one day to the next. |
| Risk identification |
Determining which risk events are likely to affect a project. |
| Round-turn |
A completed transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.A round turn counts both the buy and the sell as one event. In a typical exchange volume measurement, a one-contract trade would be counted as one round turn (i.e., single event, same trade, different customers). From the customer's perspective, a round turn represents two filled orders from his or her brokerage firm - one to take a position and one to offset that position (i.e., same customer, different trades). |
| Routing ID |
The ID from which all responses from the specific trading entity originate and to which all responses are sent. Each routing ID is unique to the assigned firm account. Thus requests which come from a specific routing ID can only be responded to through that specific routing ID. Examples: FIXSOM001A, FIXSOM001B, FIXSOM80502. Assignee: support and QA team. |
| RSM |
Route Switch Module. |
| RTH session (Regular Trading Hours) |
The open outcry trading session that takes place on the trading floor. |
| Rules |
The Certificate of Incorporation, By-Laws, rules, interpretations, orders, resolutions and similar directives of the exchange and CME, if applicable. The trading of all futures and options on futures contracts in the market operated by the exchange are subject to the rules. All references in the rules to commodity, contracts, futures, futures contract, futures transaction, futures call, or similar terms include both futures and options, except as otherwise specified or unless the context prohibits. |
| Runaway gap |
A gap in prices after a trend has begun that signals the halfway point of a market move. |