Notional Value
Trade MechanicsThe total market exposure of a leveraged position (size × price) — distinct from, and usually far larger than, the margin actually posted.
Notional value is the total value of a leveraged position, calculated as the position size multiplied by the current market price — it represents the full market exposure you control, not the margin you've actually put up. A standard lot of EUR/USD, for instance, has a notional value of roughly $100,000 regardless of how much margin was required to open it.
Understanding notional value (rather than just margin used) is essential for accurately assessing how much real market risk a position carries.