what is notional

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no·tion·al
[ˈnōSH(ə)n(ə)l]
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ADJECTIVE
notional (adjective)

existing only in theory or as a suggestion or idea:
"notional budgets for hospital and community health services"
SIMILAR:
not practical
conceptual
abstract
pure
OPPOSITE:
practical
applied
existing only in the imagination:
"Lizzie seemed to vanish into thin air, as if her presence were merely notional"
linguistics
denoting or relating to an approach to grammar that is dependent on the definition of terminology (e.g., “a verb is an action word”) as opposed to identification of structures and processes.
(in language teaching) denoting or relating to a syllabus that aims to develop communicative competence.
ORIGIN
late Middle English (in the Latin sense): from obsolete French, or from medieval Latin notionalis ‘relating to an idea’, from notio(n-) ‘idea’ (see notion).
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The notional value of any financial instrument means the total value of the derivative contract it holds and calculated by multiplying the total number of units that are there in the contract with the spot price of the said units prevailing in the market.
Notional Value - Corporate Finance Institute
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Notional Definition & Meaning - Merriam-Webster
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Webnotional adjective no· tion· al ˈnō-sh (ə-)nəl 1 : theoretical, speculative 2 : existing in the mind only : imaginary 3 : given to foolish or fanciful moods or ideas 4 a : of, relating to, or …
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What Is Notional Value?
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In market parlance, notional value is the total underlying amount of a derivatives trade. The notio…
Leverage allows one to use a small amount of money to theoretically control a much larger amount. So, notional value helps distinguish the total value of a trade from the cost (or market value) of taking the trade, There is a clear distinction: the notional value accounts for the total va…
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Notional Value - Definition, Uses in Swaps and Equity …
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The concept of notional value must not be confused with the concept of market value. Although both terms describe the value of a financial security, the concepts are used in different contexts. Notional valueis the total value of a position in a financial security. Strictly speaking, it determines how much money a position in securities control. In...
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What is a Notional Amount? (with pictures) - Smart …
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WebOct 31, 2022 · The amount is important, as it is necessary to accurately calculate any payments that must be made on that instrument. It is referred to as being notional because this amount does not actually change …
Notional Value (Meaning, Formula) | How to Calculate it?
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Notional value is the total value that a financial contract holds at the current spot priceSpot PriceA spot price is the current market price of a commodity, financial product, or derivative product, and it is the price at which an investor or trader can buy or sell an asset or security for immediate delivery.read more. It is calculated by consider...
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What is Notional Value? | Understanding Notional Value
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WebMar 4, 2016 · Notional value tells us how much total value a security theoretically controls. Standard equity option contracts control 100 shares of an underlying. The notional value …
Notional pooling definition — AccountingTools
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WebNov 24, 2022 · What is Notional Pooling? Notional pooling is a cash concentration system that allows cash to remain under local control, but which is recorded at the bank as …
What Is the Notional Value of Derivatives? - The Balance
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WebJun 29, 2022 · Notional value of a derivatives contract is the price of the underlying asset multiplied by the number of units of the underlying asset involved in the …
Notional Principal Amount Definition - Investopedia
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WebApr 25, 2022 · 1 Notional principal refers to the assumed amount of principal involved in a financial transaction, even though it is functionally separated from the transaction. This …
What is Notional Value? Meaning, Uses etc | Angel One
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WebWhat is a notional value? Notional value, also referred to as notional amount is a stock-trading term often used in the context of valuing the underlying assets during a …
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