ENTRY  N° 51  /  80
Glossary

Notional value

Part of the theme Leverage, margin and liquidation.

Definition

Notional value is the full size of the position you control, calculated for a linear contract as quantity times price.

It is the exposure the contract gives you, which is much larger than the margin posted under leverage. Funding and many fees are charged on notional, not on your margin.

Formula / example: Notional = quantity x price. 1 unit at $60,000 is $60,000 notional

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