What is "Notional Value" in Futures?

Trading and Investing Helping Traders
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What is “Notional Value” and how does it help with position sizing? A: Notional Value is the actual dollar amount of the asset you control, which is far larger than the small margin deposit you pay to open the trade. For example, if the market is trading at 5,000, a single Micro S&P 500 (MES) contract represents a Notional Value of $25,000 (Example: $5 multiplier x 5,000 price), even though the margin to open it might be only $50. Beginners should use this number to manage risk: realize that a 1% move on that $25,000 equals a $250 swing to help you avoid trading too many contracts for your account size.

Best,
Matt Z