Naked Call
| Occurs when an investor sells a call(s) without owning the underlying securities and is not selling to close out a position. See Naked Option.
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Naked Option
| The sale of a call or put option without holding an offsetting position in the underlying commodity.
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Naked Put
| See Naked Option.
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Naked Writing
| Writing a call or a put on a futures contract in which the writer has no opposite cash or futures market position. This is also known as Uncovered Writing.
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NASD (National Association of Security Dealers)
| A self-regulating authority whose jurisdiction includes the over-the-counter market.
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NASDAQ (National Association of Securities Dealers
| A communication network used to store and access quotations for qualified over-the-counter securities.
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National Association of Futures Trading Advisors (
| The national trade association of Commodity Pool Operators and Commodity Trading Advisors and related industry participants.
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National Association of Security Dealers (NASD)
| A self-regulating authority whose jurisdiction includes the over-the-counter market.
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National Association of Security Dealers Automated
| A communication network used to store and access quotations for qualified over-the-counter securities.
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National Futures Association (NFA)
| A self regulatory organization composed of futures commission merchants, commodity pool operators, commodity trading advisors, introducing brokers, leverage transaction merchants, commodity exchanges, commercial firms, and banks, that is responsible--under CFTC oversight--for certain aspects of the regulation of FCMs, CPOs, IBs, LTMs, and their associated persons, focusing primarily on the qualifications and proficiency, financial condition, retail sales practices, and business conduct of these futures professionals.
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National Securities Clearing Corporation (NSCC)
| A major clearing corporation offering many services to the brokerage community, including comparison of NYSE, AMEX, and over-the-counter transactions.
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Nearby Basis
| The difference between the current cash price and the nearby futures contract price.
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Nearby Delivery (Month)
| The futures contract closest to maturity.
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Nearbys
| The nearest delivery months of a commodity futures market.
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Negative Carry
| The cost of financing a financial instrument (the short-term rate of interest), when the cost is above the current return of the financial instrument. See Carrying Charges and Positive Carry.
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Negotiable
| A feature of a security that enables the owner to transfer ownership or title. A non-negotiable instrument has no value.
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Net Asset Value (NAV)
| The value of each unit of participation in a commodity pool. Basically a calculation of assets minus liabilities plus or minus the value of open positions when marked to the market, divided by the number of units.
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Net Performance
| An increase or decrease in net asset value exclusive of additions, withdrawals and redemption.
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Net Position
| The difference between the open long contracts and the open short contracts held by a trader in any one commodity.
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Net Worth
| Amount of assets which exceed liabilities; May also be known as stockholders equity or net assets. For an individual -- the total value of all possessions such as houses, stocks, bonds, and other securities, minus all outstanding debts, such as mortgage and loans.
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Neutral Hedge Ratio (Delta)
| The percentage of the price movement in the underlying instrument that will be translated into price movement in a particular option series. For example, a neutral hedge ratio of 50% indicates that the option will move up or down by about half of the movement in the underlying instrument. As a general rule, the neutral hedge ratio for a call option increases as the instrument price rises, and decreases as the instrument price declines.
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Neutral Spread
| An option spread created to profit from a narrow movement of the underlying instrument in either direction Neutral spreads are most often calendar spreads.
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New Issue
| A company coming to the market for the first time or issuing additional shares.
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New Shares
| Shares newly issued by a company; these shares can usually be transferred on Renounceable Documents.
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New York Stock Exchange (NYSE)
| Located at 11 Wall Street, New York, New York, a primary market for buying and selling the securities of major corporations.
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NFA
| National Futures Association.
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Nil Paid
| A new issue of shares, usually as the result of a rights issue on which no payment has yet been made.
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NOB Spread
| Note Against Bond. A futures spread trade involving the buying (selling) of a Treasury note futures contract and the selling (buying) of a Treasury bond futures contract.
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No-Load Fund
| An open-end fund that does not impose a sales charge on customers who buy their shares.
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Nominal Price
| Declared price for a futures month sometimes used in place of a closing price when no recent trading has taken place in that particular delivery month; usually an average of the bid and asked prices.
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Nominal Price (or Nominal Quotation)
| Computed price quotation on futures for a period in which no actual trading took place, usually an average of bid and asked prices.
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Nominal Yield
| The interest rate stated on the face of the bond.
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Nominee Name
| Name in which a security is registered and held in trust on behalf of the beneficial owner.
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Noncallable
| A note or bond that cannot be called prior to maturity. Many Treasury and most agency securities are noncallable.
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Noncompetitive Tender
| A method of purchasing Treasury bills, notes, and bonds directly from the Federal Reserve at the average price during an auction of new securities.
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Noncumulative Preferred Stock
| A type of preferred stock that does not pay back dividends to its holders.
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Non-Member Traders
| Speculators and hedgers who trade on the exchange through a member but do not hold exchange memberships.
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Not Held (NH)
| An indication on an order that the execution does not depend on time; the broker or trader should take whatever time is necessary to ensure a good execution.
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Note
| One of a variety of debt securities. Treasury notes refer to coupon securities with a maturity of one to ten years; municipal notes are short-term promissory notes.
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Notice Day
| Any day on which notices of intent to deliver on futures contracts may be issued. See First Notice Day.
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Notice of Delivery
| A notice that must be presented by the seller of a futures contract to the clearinghouse. The clearinghouse then assigns the notice and subsequent delivery instrument to a buyer. Also Notice of Intention to Deliver.
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Notice of Intention to Deliver
| A notice that must be presented by the seller to the clearinghouse. The clearinghouse then assigns the notice, and the subsequent delivery instrument to the longest -standing buyer on record. Under Chicago Board of Trade rules, such notices typically must be presented by 8:00 p.m. of the second business day prior to the day on which delivery is to be made.
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Notional Amount
| The amount (in an interest rate swap, forward rate agreement, or other derivative instrument) or each of the amounts (in a currency swap) to which interest rates are applied (whether or not expressed as a rate or stated on a coupon basis) in order to calculate periodic payment obligations. Also called the notional principal amount, the contract amount, the reference amount, and the currency amount.
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NSCC (National Securities Clearing Corporation)
| A major clearing corporation offering many services to the brokerage community, including comparison of NYSE, AMEX, and over-the-counter transactions.
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NYCE
| The New York Cotton Exchange.
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NYSE Maintenance Requirement
| This is the minimum amount of equity that the margin customer must have in his account. However, since the house requirements are usually higher, it is the house maintenance that is used.
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