Notional principal

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Revision as of 17:00, 13 August 2014 by imported>Doug Williamson (Added space before see also)
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Notional principal is the base amount on which the settlement of a derivative instrument - such as an Forward Rate Agreement (FRA) or a swap - is calculated.

The amount of notional principal would commonly be set equal to the principal amount of any underlying exposure being hedged.


See also

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