The phrase “notional value” is frequently used to describe the value of the underlying asset in a derivatives deal. It might be the overall worth of a position, the quantity of value a position controls, or a contractually agreed-upon sum. In the options, futures, and currency markets, this word is used to describe derivative contracts.
The whole underlying amount of a derivatives deal is referred to as notional value in market jargon. Because of a concept known as leverage, the notional value of derivative contracts is substantially larger than the market value.
Notional value = Contract size * underlying price