From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
Risk reward ratio refers to the relationship between the amount of money a trader is willing to risk on a trade compared to the potential profit they aim to achieve. It is usually expressed as a ratio, such as 1:2, meaning the trader risks $1 to potentially make $2. This concept is a key part of risk management and helps traders evaluate whether a trade is worth taking.
Learn moreA recession is a significant and prolonged decline in economic activity, typically defined as two consecutive quarters of negative GDP growth. It is characterised by rising unemployment, declining consumer spending, reduced business investment, and lower corporate earnings. Recessions have a broad impact on financial markets, often triggering sell-offs across equities and commodities.
Learn moreA repurchase agreement, commonly known as a repo, is a short-term borrowing arrangement in which one party sells securities to another with an agreement to repurchase them at a slightly higher price at a future date. The difference in price represents the interest on the loan. Repos are widely used in money markets to manage short-term liquidity needs.
Learn moreExplore all glossary terms currently grouped under the letter "R".
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