Letter N

N — Trading Terms Starting With N

Explore trading terms beginning with N, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.

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N
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Trading terms beginning with N

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N

Naked Option

A naked option is an options position sold without an offsetting position in the underlying asset or another option. It can create substantial or theoretically unlimited risk.

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Net Asset Value

Net asset value, or NAV, is the value of a fund’s assets minus liabilities, usually expressed on a per-unit or per-share basis.

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Net Profit

Net profit is the total trading profit remaining after subtracting losses, commissions, taxes, spread, financing costs, and other expenses.

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Net Loss

Net loss is the amount lost after all winning trades, losing trades, fees, taxes, financing costs, and account charges have been included.

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News Trading

News trading is a strategy that attempts to profit from price movement caused by economic data, earnings, central-bank decisions, or unexpected events.

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No-Trade Zone

A no-trade zone is a price area or market condition where the trader avoids opening positions because direction, reward-to-risk, or setup quality is unclear.

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Nominal Value

Nominal value is the stated or face value of a financial instrument. It may differ significantly from the current market value or economic exposure.

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Non-Farm Payrolls

Non-Farm Payrolls, or NFP, is a major United States employment report released monthly. It often creates volatility in forex, gold, bonds, and stock indices.

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Notional Value

Notional value is the total economic exposure represented by a derivative or leveraged position. It can be much larger than the capital or margin required to open the trade.

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