Definitions for "Notional Amount"
The nominal or face amount that is used to calculate payments made on swaps and other risk management products. This amount generally does not change hands and is thus referred to as "notional."
The amount of principal underlying an interest rate exchange agreement, and upon which is based the calculation of payments.
The amount considered as principal when calculating interest and other payments for derivative contracts. This amount traditionally does not change hands under the terms of a derivative contract.
a number of currency units, shares, bushels, pounds, or other units specified in the contract