What Is a Notional Value?
Nominal value refers to the book value reflected in historical cost. In the process of market risk management, due to frequent changes in market price factors such as interest rates and exchange rates, the nominal value is generally not of substantial significance.
Nominal value
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- Chinese name
- Nominal value
- Foreign name
- Nominal Value
- Nominal value refers to the book value reflected in historical cost. In the process of market risk management, due to frequent changes in market price factors such as interest rates and exchange rates, the nominal value is generally not of substantial significance.
- Its significance for risk management is mainly reflected in: first, measuring the profit and loss of the transaction party in the transaction after the purchase and sale of financial assets are realized; Provide reference data for trading activities. In the process of market risk measurement and monitoring, what is more substantial is market value and fair value.