Glossary And Foreign Exchange Terms N

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• Naked intervention (unsterilized intervention) A central bank intervention in the foreign exchange market that consists 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.
• National Association of Purchasing Managers Index (NAPM) A survey of 250 industrial purchasing managers, conducted in order to gauge the changes in new orders, production, employment, inventories, and vendor delivery speed.
• National Futures Association (NFA) A self-regulatory organization that consists of futures commission merchants (FCMs), commodity pool operators (CPOs), commodity trading advisers (CTAs), introducing brokers (IBs), leverage transaction merchants (LTMs), commodity exchanges, commercial firms, and banks. It is responsible for certain aspects of the regulation of FCMs, CPOs, CTAs, IBs, and LTMs, focusing primarily on qualifications and proficiency, financial conditions, retail sales practices, and business.
• Netting A process that enables institutions to settle only their net positions with one another at the end of the day, in a single transaction, not trade by trade.
• Neural networks Computer systems that recognize patterns. They may be used to generate trading signals or to be part of trading systems.
• Neutral spread (delta-neutral spread) A compound option strategy that consists of a long option position and a short option position whose respective total delta positions are relatively equal.
• Next best price stop-loss order A stop-loss order that must be executed after the requested level is reached.
• Nonfarm sector Jobs in government, manufacturing, services, construction, mining, retail and others.
• Nostro account (clearing account) The account for each foreign currency in the country of origin maintained by the financial institutions for purchase and receiving (P&R) purposes.