Futures and Forex Glossary Dictionary N1

Naked Put

Any kind of put option where the option writer isn't short in the underlying asset. Also referred to as an 'uncovered option’. See Also: Option

Narrow Market

A market where there is little trading. See Also: Thin Market

National Futures Association (NFA)

The organization that regulates the futures market. NFA is non-profit and totally independent

National Introducing Brokers Association (NIBA)

The association for introducing brokers in the U.S., representing introducing brokers to the rest of the broker industry

Nearby Delivery Month

The month closest to the delivery date for futures or expiration date for options.

Negative Carry Trade

A type of carry trade frequently used for hedging. In this type of trade you are short in the higher interest currency and long in the lower interest currency.

Negative Sloping Yield Curve

A curve showing yields for usually government bonds where the yields for short term rates begins on the left side of the graph and then extends towards the long term rates on the right. The negative slope comes from the fact that in this yield curve the short term rates are higher than long term rates, thus giving a negative curve. See also: Yield Curve

Net Asset Value (NAV)

Accounting standard used to value corporations and mutual funds. For corporations, the NAV is calculated by taking the value of all assets and subtracting all liabilities. In mutual funds, NAV is the price of one share, calculated as the total value of all assets in the fund minus liabilities divided by the total amount of shares.

Net Interest Rate differential

The difference in interest rates between two currencies.

Net Performance

The increase or decrease in net asset value over a time period.

Net Position

Positions in the forex market that are yet to be offset by the opposite position.


Settling an obligation in a transaction by only paying the net difference (profit/loss) instead of the gross value.

New York cotton exchange (NYCE)

The oldest commodity exchange in New York. Cotton was a leading commodity in the U.S. well into the 20'th century.