Relative Position Report

A TSX report that ranks each Participating Organization’s/Member’s trading activity relative to the total market and the other POs/Members. It is produced monthly for each TSX Group PO/Member.

Resistance

This is a level where a stock has a difficult time moving through. Resistance levels can be caused by former tops, breakout prices, moving averages, or just price levels where a stock has spent a lot of time in the past. When choosing buy levels, we watch for a stock to break through resistance on good volume. That indicates the move through the resistance is strong, and that the stock will most likely stay above that resistance. In such situations, former resistance then becomes support. When we take a position coming off of support, we always look for resistance levels as points where we may encounter resistance so we do not lose gains we have banked if resistance proves too much.

Responsible Registered Trader

The Registered Trader assigned by the Selection Committee to act as market maker in a security. Their duties include providing a minimum guaranteed fill, maintaining minimum spread and ensuring orderly trading.

Retractable Security

A security that features an option for the holder to require the issuer to redeem it, subject to specified terms and conditions.

Reverse Stock Split

This is where a company reduces the number of outstanding shares by decreasing the number of available shares and combining their value into the fewer shares. This has the effect of increasing the stock’s par value. This is often used by companies whose stock is about to be delisted from an exchange because of its low price.

Put/Call Ratio

The ratio of put trading volume divided by the call trading volume. For example, a put/call ratio of 0.74 means that for every 100 calls bought, 74 puts were bought. It is a contrary indicator. A reading of 1.0 or more is very bullish as most people think the market is going down. When the majority thinks the market is going to move a certain direction, it usually does the opposite.