Notional principal: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>P.F.cowdell@shu.ac.uk m (Categorise the page) |
imported>P.F.cowdell@shu.ac.uk m (Categorise the page) |
||
| Line 8: | Line 8: | ||
* [[Swap]] | * [[Swap]] | ||
[[Category:Commodity_Risk]] | [[Category:Commodity_Risk]] | ||
[[Category:Credit_Risk]] | |||
[[Category:FX_Risk]] | [[Category:FX_Risk]] | ||
[[Category:Interest_Rate_Risk]] | [[Category:Interest_Rate_Risk]] | ||
[[Category:Managing_Risk]] | [[Category:Managing_Risk]] | ||
[[Category:Pensions_Risk]] | [[Category:Pensions_Risk]] | ||
Revision as of 12:08, 13 August 2014
Notional principal is the base amount on which the settlement of a derivative instrument - such as an Forward Rate Agreement (FRA) or a swap - is calculated.
The amount of notional principal would commonly be set equal to the principal amount of any underlying exposure being hedged.
