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Notional Value is used in futures, options, and forex markets to describe the total value of the principal of a contract or transaction, especially when either none or only part of that value has actually been exchanged.
Notional value is used most often in interest rate swaps and futures contracts, and is "notional" because either no principal changed hands at the beginning of the contract (such as in an interest rate swap), or only a small payment was used to buy a larger position (such as in a futures contract).
The notional amount in these cases is the total market value of the underlying securities at the current spot price. In a cross-currency interest rate swap, there are separate notional amounts for each currency.
Profitability ratios are useful analytical tools to evaluate a company’s ability to generate profits relative to all costs
An investment bank is a financial institution that typically specializes in large, complex transactions, such as...
Accidental Death Benefits are paid only if the cause of death is deemed to be an accident. There are several exclusions
Accounting interpretations are not official standards, but they give insight for situations which may be new developments
A HELOC is a line of credit secured by the equity in your home. Homeowners can choose when to use the funds, and...
Times Interest Earned is analysis that compares the pre-tax earnings of a company to the total amount of interest payable
Household expenses are sometimes also called a family budget. In some cases this can be limited to items purchased...
There are many factors that determine how much you pay for health coverage, such as age, income level, and the type...
Non-cash contributions to a charity which are valued at over $5,000 must be reported on a Form 8282 by the organization
Ether is the currency that powers the Ethereum network, which is a platform of distributed blockchain computing