Notional

1. Derivative instruments.

A money amount used for the purposes of calculation only.

For example, a notional value in a derivatives contract, for settlement calculation purposes.

2. Cash management.

An action or concept used for calculation purposes.

For example, a notional pool of the aggregate balances on a number of related bank accounts, for interset calculation purposes.

See also

• Cash management
• Derivative instrument
• Nominal
• Notional allowances
• Notional pool
• Notional principal
• Notional value