Finance

Category: N

  • Naked Option

    Concept of Naked Option in Futures TradingIn this context of financial law, the following is a definition of Naked Option: The sale of a call or put option without holding an equal and opposite position in the underlying instrument. Also referred to as an uncovered option, naked call, or naked put.

  • Note

    Concept of Note in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A short-term debt instrument (for example with a maturity of between one and ten years) whereby the issuer agrees to make periodic payments and/or deliveries to the buyer in […]

  • Note Against Bond Spread

    Concept of NOB (Note Against Bond) Spread in Futures TradingIn this context of financial law, the following is a definition of NOB (Note Against Bond) Spread: A futures spread trade involving the buying (selling) of a Treasury note futures contract and the selling (buying) of a Treasury bond […]

  • Notice Day

    Concept of Notice Day in Futures TradingIn this context of financial law, the following is a definition of Notice Day: Any day on which notices of intent to deliver on futures contracts may be issued.

  • Net Position

    Concept of Net Position in Futures TradingIn this context of financial law, the following is a definition of Net Position: The difference between the open long contracts and the open short contracts held by a trader in any one commodity.

  • Negative Amortization

    Negative Amortization in the Context of Mortgage RefinancingsIn this context, a definition of Negative Amortization may be distilled, worded as follows: Occurs when the monthly payments in an adjustable-rate mortgage loan do not cover all the interest owed. The interest that is not paid in the […]

  • Notional Amount

    Concept of Notional Amount in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The amount of principal underlying the derivative (i.e. an instrument that transfers risk from one party to the other) contract, to which interest rates are applied […]