naked position
Definition
Unhedged position in a futures market. Writer of a call option (right to buy) or put option (right to sell) who does not have the corresponding long position or short position on the underlying asset is in a naked position—he or she is unprotected from the risks of price fluctuations. Opposite of covered position. Also called uncovered position.
naked position is in the Commodities & Precious Metals Trading, Currency Trading, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
naked position appears in the definitions of the following terms: uncovered position, risk and covered position
This content can be found on the following page:
http://www.businessdictionary.com/definition/naked-position.html
email to a friend print this definition cite this definition