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Friday, August 29, 2008
FOREX GLOSSARY
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
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
Net Interest Rate Differential
The difference in interest rates from the countries of two different currencies. For example, if the spot next rate for the Euro is 3.25% and the spot/next rate in the US is 2.00%, the interest differential is 1.25% (3.25% - 2.00% = 1.25%).
Netting
The method of settling under which only the differences in the traded currencies are settled at the close
Net Position
The amount of currency bought or sold which have not yet been offset by opposite transactions.
Next Best Price Stop-loss
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.
Non Client Order
An order on an exchange that is made by a participant firm or on behalf of a partner, officer, director, or employee of the participant firm. Where a participant firm is a firm that is entitled to trade on the exchange, also known as a member firm. While these orders are allowed, priority must be given to client orders for the same securities.
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
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
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
Net Interest Rate Differential
The difference in interest rates from the countries of two different currencies. For example, if the spot next rate for the Euro is 3.25% and the spot/next rate in the US is 2.00%, the interest differential is 1.25% (3.25% - 2.00% = 1.25%).
Netting
The method of settling under which only the differences in the traded currencies are settled at the close
Net Position
The amount of currency bought or sold which have not yet been offset by opposite transactions.
Next Best Price Stop-loss
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.
Non Client Order
An order on an exchange that is made by a participant firm or on behalf of a partner, officer, director, or employee of the participant firm. Where a participant firm is a firm that is entitled to trade on the exchange, also known as a member firm. While these orders are allowed, priority must be given to client orders for the same securities.
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
Labels: Forex Glossary
