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Naked Position
What does it mean?
A securities position that is not hedged from market risk.
In Other Words...
Both the potential gain and risk are greater when a position is naked as opposed to covered.
Related Links
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms
Hedge | Naked Call | Naked Option | Naked Put | Naked Shorting
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