Glossary · N
What is Notional value?
The full value of a futures position: price × contract size × number of contracts. One GC at $4,200 has a notional value of $420,000.
In context
Relative to a margin deposit that is only a few percent of notional value, a 1% move represents a large share of the deposit. If the margin on MGC were, hypothetically, $2,000, a $400 change would be 20% of it.
Learn it in depth
- Chapter 0: Trading from Zero: Markets, Gold, CFDs and Futures
- Chapter 1: The Gold Futures Contract and the Trading Day
Related terms
Every term in context, with real gold examples: the free 301-page eBook.
Get the free PDFRead the academy