| Naked Option |
The sale of an option (put or call) without ownership of the underlying instrument. |
| Natural Gas |
A naturally occurring mixture of hydrocarbon and nonhydrocarbon gases found in porous rock formations. The principal component of natural gas is methane, commonly known as “swamp gas.” |
| Natural Gas Liquids (NGL) |
A term for all liquid products separated from either crude oil or natural gas at the wellhead. NGL includes propane, butane, ethane, condensate, and natural gasoline. |
| Nearby Month |
Spot month. The month closest to delivery. |
| Net Position |
The difference between the open long positions and open short positions held by any one entity in any one commodity or market at any given point in time. |
| Netback |
(1.) Petroleum industry term referring to the net FOB cost of product offered on a delivered or CIF basis. (2.) In energy futures, the difference between the value of the products and the value of the crude oil from which the products are refined; also called the crack. |
| NFA |
National Futures Association. |
