If an investor simply holds 500 shares of Ford, he or she has a naked position in Ford. If the investor wanted to cover this position, he or she could buy put option contracts, which would help protect against downward movements in the price of Ford shares.
Whether to have a naked position is rarely a concern for most small investors, but it is a concern for large investment holders and institutions.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Naked Position — A long or short position that has not been hedged. ► See also Hedging … Financial and business terms
naked position — See: open position … Accounting dictionary
naked position — See open position … Big dictionary of business and management
naked position — posizione scoperta Posizione in titoli o in altri strumenti finanziari venduti ( o acquistati ) allo scoperto e non ancora coperti da una posizione in acquisto ( o vendita ). Tale posizione viene resa nota dalle autorità di Borsa … Glossario di economia e finanza
Naked Eye (song) — Naked Eye Single by Luscious Jackson from the album Fever In Fever Out Released Oc … Wikipedia
Naked (Talking Heads album) — Naked Studio album by Talking Heads Released April 3, 1988 … Wikipedia
Naked bike — refers to a class of road motorcycles without fairings.Also known as a standard or street bike, this is the basic form of the motorcycle stripped down to its fundamental parts. The emphasis is on functionality and ergonomics rather than… … Wikipedia
Naked and Sacred — Studio album by Chynna Phillips Released November 7, 1995 (U.S.) … Wikipedia
Naked Guitar — Studio album by Earl Klugh Released August 9, 2005 ( … Wikipedia
Naked Truth (Jeanette album) — Naked Truth Studio album by Jeanette Released April 7, 2006 ( … Wikipedia