| Naked futures position |
An open futures position that is not covered by an offsetting futures position or by an options contract against which it can be spread. |
| Naked option position |
An open options contract that is not covered by an offsetting position in the underlying futures commodity or by another options contract against which it can be spread. |
| Narrow-Based Index Future |
Refers to a futures contract based upon a Security Index that is considered narrow-based as defined in Section 1a(25) of the CEA. |
| National Futures Association (NFA) |
The self regulatory organization of the futures industry. Chartered by Congress in 1981, the NFA regulates the activities of its member brokerage firms and their employees. Overseen by the Commodity Futures Trading Commission (CFTC). |
| Near-The-Money |
The relationship between an option’s strike price and the value of the underlying instrument, where the strike price is near the underlying instrument’s current market price. |
| Nearby |
The nearest active trading month of a futures or options on futures contract. Also referred to as the lead month. |
| Negotiable Warehouse Receipt |
A legal document issued by a warehouse describing and guaranteeing the existence of a specific quantity (and sometimes a specific grade) of a commodity stored in the warehouse. |
| Net change |
The amount of increase or decrease from the previous trading period's settlement price. |
| Net margining |
A method by which a clearing firm's margins are based on the net position, e.g. the remaining position after netting long positions in a contract against the short positions in the customer origin. For example, if a firm had only two accounts for two customers in its customer segregated origin and one of those accounts had three open long positions and the other had two open short positions, the firm's margin would be based on the one net long position. |
| Net position |
The difference between the long open contracts and the short open contracts held in any one commodity. |
| Non-FCM |
A clearing member of the exchange that is not required to register with the CFTC as a futures commission merchant because it handles no U.S. customer business. |
| Non-serial options |
Options for months for which there are existing futures contracts of the same months. |
| Not-held (NH) |
A discretionary note on an order telling the floor broker that he or she won't be held accountable if the trade is executed outside the requirements of the order. |
| Notice day |
The day the buyer with the oldest long position is matched with the seller's intent and both parties are notified of delivery obligations. |
| Notice to Members |
Except as otherwise specifically provided, notice shall be affected by posting on the bulletin board and by first class mail addressed in accordance with the "Register" of memberships. |
| Notional value |
The underlying value (face value), normally expressed in U.S. dollars, of the financial instrument or commodity specified in a futures or options on futures contract. |
| NSC-VF |
Generic name for central trading system / futures version. It is the host used in GLOBEX, developed by SBF. NSC includes "NSC-central" (the trading engine) and "NSC-Frontal" (the communications front-end server). NSC stands for "Nouveau Systeme de Cotation" – sometimes also called SUPERCAC. |
| NºCTE |
Central Trading Engine – assigned order number or HON, used for internal system purposes. |