Forex glossary of terms
Forex glossary - N
National Futures Association (NFA) - A self-regulatory organization for the commodity futures industry comprised of firms and individuals that conduct business with the public. Overseen by the CFTC.
Nearby - The nearest active trading month of a futures or options on futures contract. Also referred to as the lead month.
Negative or bearish divergence - Occurs when two or more indicators or chart patterns do not yield the same analysis.In the above chart the RSI is rising indicating an overbought (bearish) condition, whereas the currency continues to rise.
Net Worth - The difference between the values of assets and liabilities. For public companies this is referred to as shareholder equity.
Nickel - US term for five basis points.
Non-serial options - Options for months for which there are existing futures contracts of the same months.
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.
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. Gives the broker discretion on getting the order filled.
Not Held Basis Order - An order whereby the price may trade through or better than the client's desired level, but the principal is not held responsible if the order is not executed.
Note - A financial instrument consisting of a promise to pay rather than an order to pay or a certificate of indebtedness.
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