Tag: NE

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.

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 […]

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 […]

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.

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.

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.