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Glossary of Investment Terms: N

Naked Intervention
A central bank type of intervention in the foreign exchange market which consist solely of the foreign exchange activity. This type of intervention has a monetary effect on the money supply and a long term effect on foreign exchange.

Narrow Money
Limited definition of money to include cash or near cash, i.e. M1 or M0.

Nearby Contracts
The closest active futures contracts, i.e. those that expire the soonest.

Negative Sloping Yield Curve
A yield curve where interest rates in the shorter dates are above those in the longer dates.

Netting
A process which enables institutions to settle only the net positions with one another at the end of the day, in a single transaction, not trade by trade.

Net Position
The number of futures contracts bought or sold which have not yet been offset by opposite transactions.

Next Best Price Stop-loss Order
A stop-loss order which must be executed after the request level was reached.

Nominal Quotation
Used in Futures markets to refer to the estimated price for a future month or date for which there is no bid, ask or trade price.

Nominee Name
Name in which a security is registered and held in trust on behalf of the beneficial owner.

Nostro Account
A foreign currency current account maintained with another bank. The account is used to receive and pay currency assets and liabilities denominated in the currency of the country in which the bank is resident.

Note
A financial instrument consisting of a promise to pay rather than an order to pay or a certificate of indebtedness.

Notice Day
Any day on which notices of intent to deliver on futures contracts may be issued.