Nifty 50
Sensex
US Tech 100
Dow Jones
FTSE
Dax
CAC
Nikkei 225
Hang Seng
SSE Composite
TAIEX
KOSPI
Gift Nifty
Strategy Indices
Broad Market Indices
Sectoral Indices
Thematic Indices
Home
Finance GlossaryNotional Value
Notional Value
Definition of Notional Value
Notional Value refers to the total value of an underlying asset represented by a financial contract, such as derivatives or futures. It is used to calculate exposure and risk, even though the actual amount invested or exchanged may be much smaller than the notional value itself.
Related Terms
Margin Funding
Margin funding is a feature offered by brokers that allows users to borrow funds from the broker to increase purchasing power for trading or investing in financial markets. Margin funding is effectively a loan and as a result, there’s collateral to be pledged in the form of shares either already owned to about to be bought. Thus, margin funding amplifies profit and loss.
Draft Offer Document
A draft offer document is the preliminary version of the IPO document that a company must file with SEBI 21 days before submitting the actual IPO document. The draft offer document is open to the public for comments during the 21 -day period. SEBI may suggest changes to the draft offer document in this period.
Basing
Basing happens when a security trades sideways after prolonged periods of falling prices.
As a result, the security forms a “base” or flat pattern which means there is little to no upward or downward movement and a decline in volatility.
This may go on for a relatively long time but is crucial as basing is an indicator of any meaningful reversal that may happen.
As a result, the security forms a “base” or flat pattern which means there is little to no upward or downward movement and a decline in volatility.
This may go on for a relatively long time but is crucial as basing is an indicator of any meaningful reversal that may happen.
Scalping
Scalping is a short-term trading strategy. Here, traders can make strong profits as they engage in transactions as the stock prices frequently move. Usually, these positions are held for seconds or minutes. The liquidity of the stock and tight spreads determine the success of the strategy. In scalping, each trade generates a small profit. However, with consistency and discipline, traders can benefit from scalping over time.
Mid-Cap
Mid-Cap companies are those ranked 101 to 250 by market capitalisation in the overall market. They are generally larger and more stable than small-cap companies while still offering higher growth potential than large-cap stocks. Mid-cap stocks often appeal to investors seeking a balance between growth opportunities and risk.
Market Maker
A market maker is an individual or a firm that continuously quotes bid (buy) and ask (sell) prices in order to provide liquidity and ensure smooth trading. They act as intermediaries, buying from sellers and selling to buyers from their own inventory, which facilitates smooth, efficient trading and reduces price volatility for other investors. This role is generally played by financial institutions like brokerage firms or investment banks.
Invest & Trade with a Trading
Platform That's #MadeForTrade
Open your Dhan Account in minutes!
