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Volatility Ratio

A ratio that relates the implied volatility of a security to its recent historical volatility: Volatility ratio = implied volatility...

Order Anticipation

A directional strategy that is deployed by high frequency traders, both as providers and users of liquidity, in the lookout...

Order Protection

The process whereby an order searches all available venues for the best price (whether best bid or best offer). This...

Off-Exchange Liquidity

The market liquidity that is created by means of off-exchange trading such as upstairs markets and electronic trading platforms- i.e.,...

R/T Rate

It stands for round-turn rate; the total cost of a commodity transaction. It consists of all bid-ask spreads, exchange fees,...

Risk-Off Trading

Trading that involves less risky or riskless securities or secure trading positions. This usually initiates with dumping of risky securities...

Round-Trip Rate

The total cost of a commodity transaction. It consists of all bid-ask spreads, exchange fees, the broker's commission (in a...

RORO

It stands for risk-on, risk-off; the process of two-way switching between risky and risk-free investments depending on or in reaction...

Redemption

The process of buying back (or selling back) shares of preferred stock or mutual fund shares by (to) the issuer...

Pre-Announced Trade

A large trade that is intentionally publicized as an invitation to market participants to deal. Execution of the deal will...