Notional Principal in Financial Formulas

Notional Principal is the nominal or face value of a financial instrument, representing the amount used to calculate payments and obligations but not necessarily exchanged. And is denoted by NP.

Financial formulas that make use of Notional Principal

fxFRA Payoff ( Long Position )Go

FAQ

What is the Notional Principal?

Notional Principal is the nominal or face value of a financial instrument, representing the amount used to calculate payments and obligations but not necessarily exchanged.

Can the Notional Principal be negative?

{YesorNo}, the Notional Principal, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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