Notional Value Definition

Notional value is the total value controlled by a leveraged position, rather than the margin used to open it.

What is Notional Value?

It reflects the full exposure of a trade, which is important for understanding actual risk when using leverage.

Notional value is often significantly higher than the capital actually deposited as margin.

A leveraged position controlling $100,000 worth of currency has a notional value of $100,000, even if only $2,000 of margin was used.

Net asset value is the total value of a fund's assets minus its liabilities, often expressed on a per-share basis.

Negative balance protection is a broker policy ensuring a client's account cannot fall below zero, even during extreme market volatility.

Net income is a company's total profit after all expenses, taxes, and costs have been deducted from revenue.