// definition
Notional amount
The contractual size of a derivative
Short definition
An amount describing a derivative’s contractual size. Depending on the product, it can be a principal that must be paid, a contingent payout or a reference for calculating cash flows. It differs from the contract’s market value and does not by itself measure the possible loss. Comparisons require the instrument and counting convention to be specified.
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Primary sources
- BIS, derivatives concepts and statistics, December 2025Payable principal, contingent payout and calculation reference by product; distinction from market value.