Notional Value
Notional value is the reference amount used to calculate derivative payments, exposure, and leverage without necessarily changing hands.
Notional value and risk-bearing terms used to interpret derivative exposure and risk transfer.
Notional Value and Risk Bearing is the financial-instruments landing page for underlying assets, derivative securities, equity-linked notes, CFDs, notional value, risk bearing, hedging strategies, hedge ratios, and long hedges. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.
Use this page when a derivative exposure or hedge term changes the risk being transferred, measured, or offset. Use the parent Derivative Risk, Hedging, and Underlyings page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.
Use the table below to move from this landing page into the term page that best matches the instrument evidence.
| Term | Use it for |
|---|---|
| Notional Value | Notional Value helps identify the exposure, hedge relationship, notional amount, or underlying reference behind a derivative. |
| Risk Bearing | Risk Bearing helps identify the exposure, hedge relationship, notional amount, or underlying reference behind a derivative. |
A hedge ratio can show how many futures contracts are needed to offset part of a price exposure, but the hedge may still leave basis risk.
Notional Risk content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Notional value is the reference amount used to calculate derivative payments, exposure, and leverage without necessarily changing hands.
Risk bearing is accepting exposure to uncertain outcomes such as price moves, credit losses, rates, or volatility in exchange for expected compensation.