notional amount

As a result, the company no longer discloses the notional amount of its derivative position, which was $1.1 billion in 2000.

In order to profit, the bookmaker must pay one side (or both sides) less than this notional amount.

Contrary to a future, a forward or an option, the notional amount is usually not exchanged between counterparties.

Essentially, a quanto has an embedded currency forward with a variable notional amount.

The payments are calculated over the notional amount.

The estimated notional amount of the world's derivatives is some $600 trillion - 40 times what the United States produces in one year.

In a regular cross currency, the notional amounts of both legs are constant during the life of the swap.

The total notional amount of all the outstanding positions at the end of June 2004 stood at $53 trillion.

This method provides relief based on the notional amount of duty which would have been due on the exported goods.

At retirement, the cash value of all these notional amounts is added up to produce the annual pension the employee is due.

Notional amount: The nominal or face amount that is used to calculate payments made on swaps and other risk management products.

When the legs are in different currencies, the respective notional amount are typically exchanged at the start and the end of the swap.

This deal was brokered by Salomon Brothers with a notional amount of $210 million dollars and a term of over ten years.

On this type of agreement, it is only the differential that is paid on the notional amount of the contract.

No initial exchange of the notional amount occurs unless the Fx fixing date and the swap start date fall in the future.

Because an NDF is a cash-settled instrument, the notional amount is never exchanged.

NPCs involve two parties who agree contractually to pay each other amounts at specified times, based on the underlying notional amount.

LDRs may represent ownership of either an underlying number of shares or a notional amount of bonds.

Quanto swaps, in which one counterparty pays a non-local interest rate to the other, but the notional amount is in local currency.

TBAs are traded by MBS traders with notional amounts.

The notional amount of the swap does count for notional leverage, so notional leverage is 2 to 1.

However, in the case of a variance swap, the notional amount is specified in terms of vega, to convert the payoff into dollar terms.

It is that variable notional amount that give quantos their name-"quanto" is short for "quantity adjusting option."

JP Morgan currently has the largest credit default swap and credit derivatives portfolio by total notional amount of any US bank.

A potential problem with derivatives is that they comprise an increasingly larger notional amount of assets which may lead to distortions in the underlying capital and equities markets themselves.