Notional value

In plain English

Distinct from capital at risk. Notional above your account equity means you are using leverage.

Example

50 units at $50 is $2,500 of notional, whatever your stop distance is.

See also

• Position size
• Leverage

Used in these lessons

• Funding and Carrying Costs
• Contract Specifications and Tick Value
• Hedging Basics with Futures
• Position Sizing Explained
• Correlation and Portfolio Risk
• Costs of a Round Trip