What Is a Rogue Trader? A rogue trader is a trader who acts recklessly and independently of others, usually to the detriment of the institution that employs the trader and perhaps clients. Rogue traders typically play with high-risk investments that can produce huge losses or gains. Rogue traders, though, are only labeled as such if
What Is Roll Forward? Roll forward refers to extending the expiration or maturity of an option, futures contract, or forward by closing the initial contract and opening a new longer-term contract for the same underlying asset at the then-current market price. A roll forward enables the trader to maintain the position beyond the initial expiration of
What Is Rolling EPS? Rolling EPS gives an annual earnings per share (EPS) estimate by combining EPS from the past two quarters with estimated EPS from the next two quarters. It may be calculated with the following formula: Rolling EPS = (Net income from the previous two quarters + next two quarters – preferred dividends)
What Are Rolling Returns? Rolling returns, also known as “rolling period returns” or “rolling time periods,” are annualized average returns for a period, ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods, similar to those actually experienced by investors. Looking at a portfolio or fund’s rolling returns will
What Is a Rollover? A rollover may entail a number of actions, most popularly the transfer of the holdings of one retirement plan to another without creating a taxable event. A rollover may also entail reinvesting funds from a mature security into a new issue of the same or similar security, or moving a FOREX (FX) position
What Is a Rollover Credit? A rollover credit is a net payment of interest received by a forex trader who holds a long position on a currency pair overnight when the long currency pays a higher rate on interest than the short currency in the pair. An overnight position in FX is one that does not close on the same
What Is Rollover Risk? Rollover risk is a risk associated with the refinancing of debt. Rollover risk is commonly faced by countries and companies when a loan or other debt obligation (like a bond) is about to mature and needs to be converted, or rolled over, into new debt. If interest rates have risen in
What Is a Roll Rate? In the credit card industry, the roll rate is the percentage of cardholders who become increasingly delinquent on their account balances due. The roll rate is essentially the percentage of card users who “roll” from the 60-days late category to the 90-days late category, or from the 90-days late to
What Is an Options Roll Up? An options roll up refers to closing an existing options position while opening a new position in the same option at a higher strike price. It is the opposite of an options roll down, where an investor simultaneously closes one position and opens another with a lower strike price.
What Is Return on Net Assets (RONA)? Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income. The RONA ratio shows how well a company and its management are deploying assets in
