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- Notional refers to something that is based on an idea or a concept rather than something that is real or actual1. Here are some examples of notional:
- The notional earnings of the company were close to the actual ones1.
- An investor wants to buy one gold futures contract. The futures contract costs the buyer 100 troy ounces of gold. If gold futures are trading at $1,300, then one gold futures contract has a notional value of $130,0002.
- The notional value of a soybean futures contract is calculated by multiplying the number of contract units by the contract price3.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Examples of notional in a Sentence The notional earnings of the company were close to the actual ones. she has a notional understanding of romantic love but no actual experience of being in lovewww.merriam-webster.com/dictionary/notionalThe notional value is calculated by multiplying the units in one contract by the spot price. For example, assume an investor wants to buy one gold futures contract. The futures contract costs the buyer 100 troy ounces of gold. If gold futures are trading at $1,300, then one gold futures contract has a notional value of $130,000.www.investopedia.com/ask/answers/050615/what-…Notional Value = Contract Unit x Current Price So, if soybeans were trading at $13.07, you would multiply the number of contract units (5,000) by the contract price, $13.07. The notional value of a soybean futures contract at this price would be $65,650 (5,000 x $13.07). A future contract's price is a reflection of how many 'ticks' it has moved.www.investopedia.com/ask/answers/042215/how-c… Explore further
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