Notional Value

The total face value of the assets underlying a derivatives contract, as opposed to the market value of the contract itself. A single E-mini S&P 500 futures contract might require only $12,000 in margin but control a notional value of over $250,000. Notional value is particularly important for understanding leverage in derivatives markets and for regulatory reporting purposes, though it can overstate actual economic exposure since many derivatives positions offset each other.