Category: N
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Notice of Intent to Deliver
Concept of Notice of Intent to Deliver in Futures TradingIn this context of financial law, the following is a definition of Notice of Intent to Deliver: A notice that must be presented by the seller of a futures contract to the clearing organization prior to delivery. The clearing organization […]
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Next Day
Concept of Next Day in Futures TradingIn this context of financial law, the following is a definition of Next Day: A spot contract that provides for delivery of a commodity on the next calendar day or the next business day. Also called day ahead.
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Negative Carry
Concept of Negative Carry in Futures TradingIn this context of financial law, the following is a definition of 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 […]
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National Futures Association
Concept of National Futures Association (NFA) in Futures TradingIn this context of United States financial law, the following is a definition of National Futures Association (NFA): National Futures Association (NFA): A self-regulatory organization whose members include futures commission […]
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Nostro Reconciliation
Concept of Nostro Reconciliation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process performed to ensure that the expected cash movements of a transaction (or multiple transactions) are reconciled with the actual cash movements […]
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Narrow-Based Security Index
Concept of Narrow-Based Security Index in Futures TradingIn this context of financial law, the following is a definition of Narrow-Based Security Index: In general, the Commodity Exchange Act defines a narrow-based security index as an index of securities that meets one of the following four […]
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Netting
Concept of Netting in Futures TradingIn this context of financial law, the following is a definition of Netting: The process of calculating aggregate risk exposures across the portfolios of market participant. For example, if a trader has entered one trade in which she is long $100 worth of […]
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Non Recourse Factoring
Definition of Non Recourse FactoringThis is the meaning of Non Recourse Factoring published by Marco Terry: A form of factoring where the factoring company will absorb any credit losses that result from a customer defaulting on an invoice. The types of credit losses that are absorbed vary by […]
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Notional Principal
Concept of Notional Principal in Futures TradingIn this context of financial law, the following is a definition of Notional Principal: In an interest rate swap, forward rate agreement, or other derivative instrument, the amount or, in a currency swap, each of the amounts to which interest rates […]
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Nearby Delivery Month
Concept of Nearby Delivery Month in Futures TradingIn this context of financial law, the following is a definition of Nearby Delivery Month: The month of the futures contract closest to maturity; the front month or lead month.
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Novation
Novation ProtocolConcept of Novation Protocol in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A document published by ISDA (International Swaps and Derivatives Association, Inc.)that defines the market standard procedures for novating […]
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Notice of Assignment
Definition of Notice of AssignmentThis is the meaning of Notice of Assignment published by Marco Terry: A notice that is sent to customers informing them that the invoice has been factored and pledged as collateral. The NOA also informs the customer of the new payment address.
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Nominal Price
Concept of Nominal Price (or Nominal Quotation) in Futures TradingIn this context of financial law, the following is a definition of Nominal Price (or Nominal Quotation): Computed price quotation on a futures or option contract for a period in which no actual trading took place, usually an […]
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NFA
Concept of NFA in Futures TradingIn this context of financial law, the following is a definition of NFA: National Futures Association.
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Net Asset Value
Concept of Net Asset Value (NAV) in Futures TradingIn this context of financial law, the following is a definition of Net Asset Value (NAV): The value of each unit of participation in a commodity pool.