What is the meaning of Notional?

Notional is the stipulated principal amount for a swap transaction. There is no transfer of ownership in the principal for a swap; but there is an exchange in the cash flows for the designated coupons.

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APABarry Goldsmith. (2010). notional. Retrieved September 24, 2026, from http://smartdefine.org/notional/definitions/1159394
ChicagoBarry Goldsmith. 2010. "notional" http://smartdefine.org/notional/definitions/1159394 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, notional, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/notional/definitions/1159394>.
MLABarry Goldsmith. "notional" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/notional/definitions/1159394>
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