Glossary N

Refers to a short option position that doesn't have an offsetting stock position. For example, a client has a naked call if they sell a call without being long the quantity of stock represented by their short call or a long another call against it. They have a naked put if they sell a put without being short the quantity of stock represented by their short put or long another put against it. Compare to covered call or put.

The change in the price of a stock or option from the closing price of the previous day.

The difference between a client's open long and open short positions in any one stock or option.

Founded in 1792, it is the oldest and largest stock exchange in the United States. 

The role of a brokerage firm when client securities are held in street name.

Security that must be paid for in full. Call and put option contracts are examples of this type of security.

An order that gives the floor broker discretion on time and price in getting the best possible fill for a client. When entering a not held order, a client agrees to not hold the broker responsible if the best price is not obtained.