Notional principal: Difference between revisions
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imported>P.F.cowdell@shu.ac.uk m (Categorise the page) |
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The amount of notional principal would commonly be set equal to the principal amount of any underlying exposure being hedged. | The amount of notional principal would commonly be set equal to the principal amount of any underlying exposure being hedged. | ||
== See also == | == See also == | ||
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* [[Swap]] | * [[Swap]] | ||
[[Category: | [[Category:Manage_risks]] | ||
[[Category: | [[Category:Manage_risks]] | ||
[[Category: | [[Category:Manage_risks]] | ||
[[Category: | [[Category:Manage_risks]] | ||
[[Category: | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 17:00, 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.
