BusinessAugust 13, 2026
notional
NO-shuh-nul
Definition
Relating to the face value or nominal amount of a contract or financial instrument, as opposed to the actual amount of capital invested.
Etymology
Derived from the Latin word 'notionalis', meaning 'of or pertaining to a notion or idea', it entered English in the 16th century to describe something existing only in concept or theory rather than in reality.
In the news
In the context of prediction markets like Kalshi, the term refers to the total volume or value of the contracts being traded rather than the specific margin or premium paid by participants.
Kalshi's Valuation Could Nearly Double to $40 Billion After Reports Suggest It Could Raise Another $750 Million. Here's What's Driving the Prediction Market Boom.
Read the full article ↗The Motley Fool