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Glossary of Terms
As the commerce and industry have evolved, each sector has developed a vocabulary that uniquely describes its products,
technology, and business practices, known as a jargon of respective domain. Often, these words seem incomprehensible to
the layman. This short lexicon is not meant to be a comprehensive dictionary of markets; nevertheless it would be a useful
guide for the beginners who are keen to no more about financial markets and futures industry.
N
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Naked :-
A long or short market position taken without
having an offsetting short or long position. A trader who executes one
side of a spread is said to be naked until he executes the other side.
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National Futures Association :-
Futures industry trade association which
promulgates rules of conduct and mediates disputes between customers and
brokers.
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Net Position :-
The difference between an individual or firm's
open long contracts and open short contracts in any one commodity.
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Neutral Spread :-
Another name for a delta neutral spread.
Spreads may also be lot neutral, where the total number of long contracts
and the total number of short contracts of the same type are approximately
equal.
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Nominal Price :-
The 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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NYMEX ACCESS(r) :-
NYMEX ACCESS(r) is an international after-hours
trading system offered by the New York Mercantile Exchange. The Exchange
provides the user with the equipment, software, and services. ACCESS stands
for American Computerized Commodity Exchange System and Services.
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