Understanding Notional Value

[Chazb]

I am having a little difficulty wrapping my head around, Notional Value. So i thought perhaps i might get several different ideas of what it is.

[ponponwei]

@Clint Has several posts explaining this concept here. Just hit that search button up top, type his name and then notional value.

Here’s one I found:

How Many Units Can I Buy?

Good. That saves us from having to do the math all over again in some other account currency Or, you could simply say that one AUD is worth much more than one ZAR, without reference to a quote currency, or to your account currency. I don’t have an AUD/ZAR rate on my platform, so let’s create a [I]synthetic AUD/ZAR rate[/I] using the AUD/JPY and the ZAR/JPY. As of the New York close on Friday, AUD/JPY = 83.225 bid, and ZAR/JPY = 8.055 bid. These prices can be read this way:…

[LiamMillen]

Derivatives are used in international evaluation work. Controls the total value. And can hold long-term value.