Naked long

Refers to a directional long position that is not hedged.

Naked short

Refers to a directional short position that is not hedged.

NASDAQ (National Association of Securities Dealers Automatic Quotation System)

An index and electronic quotation system that provides price quotations to market participants about companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology industries. About 3300 companies trade on the NASDAQ.

NAV (net asset value)

The total value of the fund's assets less liabilities. Equal to the closing market value of all securities within a portfolio plus all other assets, subtracting all liabilities.

Net exposure

The percentage of a fund that is currently net invested to market risk. It is calculated as the difference between the long and the short positions. For example, if a fund is 100% long and 25% short, then the fund is 75% net long.

Net long

A condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy.

Net rate of return

Measures a fund's return net of all fees and expenses over a specified period, expressed as a percentage increase over the initial investment cost.

Net short

A condition in which an investor has more short positions than long positions in a given asset, market, portfolio or trading strategy.

Non-cyclicals

A category of stocks in industries that face constant demand and that do not rely on business cycles or economic conditions. Such as the health care industry for example.

Non-directional

An investment strategy which aims to profit from fully or partially hedged positions rather than making bets on the price movements of securities.