In financial markets, we often talk about contracts with standardized volumes, so we may not know the real value of our trade. Therefore, we must learn to calculate the notional value.

**How do I calculate the notional value of my trade in Forex?**

In Forex, the volume of our operations is standardized, with the basic unit of measurement being 1 lot, which is equivalent to 100,000 units of the base currency.

**Notional value = Volume * 100.000**

Volume = 1 lot EURUSD --> Notional value = 1*100.000 = 100.000 EUR

Volume = 0,5 lots EURUSD --> Notional value = 0,5*100.000 = 50.000 EUR

Volume = 2 lots EURUSD --> Notional value = 2*100.000 = 200.000 EUR

**How do I calculate the notional value of my index CFD trade?**

In the stock markets, indices are quoted in points, so to calculate the notional value of a transaction, we need to convert the points into currency (either EUR, USD, GBP, etc.) using a multiplier; the following formula is used to calculate the notional value.

**Notional value = volume* multiplier *price**

Please note that the multiplier on our index CFDs will always be 1 USD/EUR/GBP per point to make this calculation easier.

Let's see below some examples of the NQ100 and Germany40 indices.

* Let's assume a quote value on NQ100 of 19700 points

Volume = 1 lot --> Notional value = 1*1 USD/point*19700 = 19700 USD

Volume = 0,5 lots --> Notional value = 0,5*1 USD/point*19700 = 9850 USD

Volume = 2 lots --> Notional value = 2*1 USD/point*19700 = 39400 USD

* Let's assume a quote value on Germany40 of 18100 points

Volume = 1 lot --> Notional value = 1*1 EUR/point*18100 = 18100 EUR

Volume = 0,5 lots --> Notional value = 0,5*1 EUR/point*18100 = 9050 EUR

Volume = 2 lots --> Notional value = 2*1 EUR/point*18100 = 36200 EUR

**How do I calculate the notional value of my Commodity CFD trade?**

In the case of commodities, to calculate the notional value of a trade, we need to consider that 1 contract can include different units of the commodity (ounces, barrels, etc.). Therefore, we need to include the size of the contract in the formula.

**Notional value = volume*contract size*price**

An example of the notional value of a trade in Gold CFD, whose contract size is 100 ounces

* Let's assume a quote value on Gold CFD of 2300 USD

Volume = 1 lot --> Notional value = 1*100*2300 = 230000 USD

Volume = 0,5 lots --> Notional value = 0,5*100*2300 = 115000 USD

Volume = 2 lots --> Notional value = 2*100*2300 = 460000 USD

An example of the notional value of a trade in Brent, whose contract size is 100 barrels

* Let's assume a quote value on Brent of 80 USD

Volume = 1 lot --> Notional value = 1*100*80 = 8000 USD

Volume = 0,5 lots --> Notional value = 0,5*100*80 = 4000 USD

Volume = 2 lots --> Notional value = 2*100*80 = 16000 USD

**How do I calculate the notional value of my share or share CFD trade?**

In this case, calculating the notional value is easier since we will only have to consider the number of shares and the price. Therefore, the formula will be the following:

**Notional value = shares*price**

An example of the notional value of a trade in Tesla with a quote value of 190 USD

Volume = 1 share --> Notional value = 1*190 = 190 USD

Volume = 100 shares --> Notional value = 100*190 = 19000 USD

Volume = 20 shares --> Notional value = 20*190 = 3800 USD

If you have any questions, do not hesitate to contact us.

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