Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Namibian Dollar (NAD)
The Namibian dollar, ISO code NAD, is pegged to the South African rand. It trades one-to-one with the rand under the Common Monetary Area, the arrangement linking several of southern Africa’s economies to their dominant neighbour, and the rand is legal tender inside Namibia right alongside the local currency. The Namibian dollar, though, is not accepted in South Africa. Because of the peg, Namibia effectively imports South African monetary conditions, and the NAD closely follows movements in the rand against the rest of the world. Example: When the rand slides against the US dollar on shaky commodity prices or political noise out of Pretoria, the Namibian dollar also depreciates against the dollar by a similar amount, since the one-to-one link closely ties its value to the rand. A Namibian importer paying for goods in dollars feels South Africa’s currency swings as directly as if he were trading the rand itself, which in practical terms is similar to what he is doing.
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.
NASDAQ 100
The NASDAQ 100 is where the tech giants are concentrated. It tracks the hundred largest non-financial companies listed on the Nasdaq exchange, and because the exchange has long been home to technology, the index is dominated by the likes of Apple, Microsoft, Nvidia, Amazon, and the rest of the megacap crowd. Financial firms are deliberately left out. It is weighted by market value, so the biggest names swing it the most, which means a handful of tech titans can drive the whole index. Traders follow it as a key gauge of growth and tech sentiment. Example: On a day when strong earnings from a big chipmaker lift the mood across technology, the NASDAQ 100 can jump sharply while a broader, more balanced index barely moves, because tech carries so much weight in it. Investors wanting exposure to that growth story may consider the risks of investing in a fund tracking the index, including its heavy concentration in a small number of enormous companies.
NASDAQ Composite
Broader than its famous sibling, the NASDAQ Composite takes in almost everything listed on the Nasdaq exchange, some three thousand-plus companies, rather than just the top hundred. That sweep includes plenty of technology, which gives the index its growth-heavy character, but also a long tail of smaller and mid-sized firms across many sectors. It is market-cap weighted, so the giants still dominate, yet the sheer number of constituents makes it a far wider read on the exchange than the NASDAQ 100. When people say the Nasdaq rose or fell, they often mean this one. Example: During the dot-com boom and bust around 2000, the NASDAQ Composite became closely associated with the whole era, soaring to a peak on tech euphoria and then falling by roughly three-quarters as the bubble burst, a swing that captured the fate of hundreds of technology companies the narrower blue-chip indices never even touched, and one that took the index years to fully recover from.
National Futures Association (NFA)
The National Futures Association is the industry’s own self-regulatory organisation for US derivatives. A self-regulatory body, the NFA oversees firms and individuals in the futures, options, and retail foreign-exchange markets, setting the rules of conduct, registering brokers, auditing members, and disciplining those who break the rules. It operates under the oversight of the government regulator, the Commodity Futures Trading Commission, but does much of the day-to-day policing itself. For an ordinary trader, its main value is providing oversight and a way to check exactly who they are dealing with. Example: Before funding an account, a cautious US trader looks up her forex broker in the NFA’s online registry to confirm it is properly registered and to scan its disciplinary history. If the firm is not a member in good standing, that is a red flag, since operating outside NFA registration in the US may indicate that the firm is not authorised or registered where required.
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