notional value

Definition

The value of a derivative's underlying assets at the spot price. In the case of an options or futures contract, this is the number of units of an asset underlying the contract, multiplied by the spot price of the asset.

Use notional value in a sentence

I wanted to know the notional value o I went to one of the people working there and asked him what it was.

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The notional value that was posited by the stock was of a much great significance to him than any other barometer of its performance.

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When trying to understand the notional value of his option's contract, he had to look at the number of units available and examine the current price of the asset.

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