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What Is ‘Notional Value’ in Derivatives Trading?

The total value of the underlying asset controlled by a contract, calculated as size multiplied by price.
Greeks.Live23.11.25

What Is ‘Notional Value’ in Derivatives Trading?

Notional value is the total value of the underlying asset a derivatives contract controls. It is calculated by multiplying the contract size by the current price of the underlying asset.

This value is distinct from the actual capital a trader invests (the margin). Margin requirements are often calculated as a percentage of this larger notional value.

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