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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Naked position

A position in which a trader holds an order without owning an offsetting position to mitigate risk.

Narrow market

A market in which trading activity is limited and price movements are small.

Narrow spread

A small difference between the bid and ask prices of a product.

Negative carry pair

A forex pair in which the interest rate on the base currency is lower than the interest rate on the quote currency.

Net position

The value of a position held by a trader after subtracting the initial cost of setting up that position.

Netting

The process of offsetting multiple trades or positions to reduce risk exposure.

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