Notional value
Notional value is the full size of a position, price times quantity, whatever margin backs it: ₹50,000 of exposure on ₹10,000 of margin has a notional of ₹50,000. Fees, funding and profit are all charged on it, which is why leverage multiplies cost, not only risk. It is the order value on the card in lecture 0.2.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Margin interestMargin interest is what a US broker charges, daily, on cash it lends you to buy shares. A perpetual contract has no…
- Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…
- Overnight financing / swap feeOvernight financing, or a swap fee, is the daily interest a broker charges for holding a leveraged position past the…
- Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
- ROE (return on equity in trading)ROE in trading is your profit or loss as a percent of the margin you posted, not of the position. At 10x a 1% move is…
- Maker and taker feesA maker fee is charged when your order rests on the book and adds liquidity; a taker fee when it fills against a…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.