Notioneel

Notioneel is a term used in finance, particularly in derivatives, to denote the notional value or notional principal of a contract. It represents the nominal amount on which payments are calculated and is not itself exchanged in most transactions.

Used in instruments such as interest-rate swaps, forwards, options and credit-default swaps, the notional principal forms the basis for determining payments, but the actual cash flows depend on reference rates or underlying events. For example, in an interest-rate swap with a notional of 100 million, interest leg payments are computed from that amount, yet the notional is typically not exchanged at the start or end of the contract; instead, net cash flows are settled periodically.

Notional value vs exposure: The notional amount can be very large while the real exposure to loss is smaller; aggregated portfolios can have large gross notional values that do not correspond to actual credit or market risk. Consequently, notional is just one metric used in risk assessment and market size reporting; other metrics such as mark-to-market value, net exposures, and potential future exposure provide a more accurate picture of risk.

Regulatory and reporting usage: Notional amounts are common in market statistics and regulatory reports to convey the scale of derivatives markets, though they may overstate actual risk if used alone. The term derives from the Latin 'notion' via English notional, and in Dutch usage aligns with terms like notionele waarde or notioneel bedrag.