Existing only as an idea, not as something…. The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. Notional value is the total value that a financial contract holds at the current spot price spot price a 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.
What does Notion mean? YouTube
Conceptional , ideational abstract existing only in the mind;
Adjective notional not real or actual;
How much value is represented by a derivatives contract. The notional value is the total amount of a security’s underlying asset at its spot price. Existing only as an idea, not as something real: Given to foolish or fanciful moods or ideas.
Hypothetical, ideal, abstract, theoretical more synonyms of notional.
In fact, the notional amount is a reference value for calculating the interest on the transaction, and it expresses how much of the total value the derivative theoretically controls. In an interest rate swap, the arbitrary amount over which interest is calculated. Of the nature of a notion or idea: Existing in the mind only :
Notional value is different than the amount of money invested in a derivative contract.
Financial instrument used to calculate value. Indulging in or influenced by fancy. In other words, the notional amount indicates how much money is controlled by a position on a particular financial instrument. Suppose the two legs of the swap are a fixed interest rate, say 3.5%, and a floating interest rate, say libor + 0.5%, and the notional principal amount is $1 million.
The notional tax amount is the tax that would be payable on the taxable income of the hospital business for each tax year as if that business were a stand alone taxpayer.
Notional value is a term often used to value the underlying asset in a derivatives trade. Relating to the meaning expressed by a linguistic form. Separated from embodiment adj not based on fact or investigation “a notional figure of cost helps in determining production costs” synonyms: Something that is notional exists only in theory or as a suggestion or idea, but not in reality.
Having full lexical meaning, in contrast to relational.
[formal].the notional value of state assets. The notional value is quoted for different derivatives such as swaps,. Notional value (also known as notional amount or notional principal amount) is the face value on which the calculations of payments on a financial instrument (e.g., swap) are determined. Pertaining to or expressing a notion or idea.
Adjective notional given to or full of foolish or fanciful ideas or moods.
What is the meaning of notional effect? For instance, in an options contract of 100 shares of an underlying asset, the notional amount is the contract size. Notional date means the notional date determined by the board in respect of each issue of a shares, being the date on which the a shares in question will become redeemable in terms of paragraph 3.7 if there are still notional outstandings attached to those a shares by that date; ‘notional budgets for hospital and community health services’.
The notional value is calculated by multiplying the units in one contract by the spot price.
Characteristic of a notion or concept, esp in being speculative or imaginary; For the avoidance of doubt the notional tax amount cannot be negative. In other words, the notional amount indicates how much money is controlled by a position on a particular financial instrument. Notional value of derivatives contracts is much higher than the market value due to a concept called.
Being of the nature of a notion or concept.
Abstract, theoretical, or speculative, as reflective thought. 1 existing as or based on a suggestion, estimate, or theory; To create a notional world for oneself. ‘hence, one creates these surchargeable contributions, which are a notional figure, based on.
Relating to, expressing, or consisting of notions or ideas.
The notional tax amount is the tax that would be payable on the taxable income of the hospital business for each calculation period. 1 adj being of the nature of a notion or concept “to improve notional comprehension” “a notional response to the question” synonyms: Notional value (also known as notional amount or notional principal amount) is the face value on which the calculations of payments on a financial instrument (e.g., swap) are determined. Of, relating to, or being a notion or idea :
A notional response to the question.
Notional value is a term often used to value the underlying asset in a derivatives trade. Notional value is the total value controlled by a position or obligation; ‘all italian property owners are liable to pay income tax based on the notional letting value of the property.’. The notional value distinguishes between the amount of money invested and the amount of money associated with the whole transaction.
