What Is Notional Value? Contract Size and Exposure Explained

Notional value = contract size × number of contracts × current price. The contract size varies by instrument and asset class, which is the part most often gotten wrong.

In FX, one standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot is 1,000. In futures, each contract has a defined multiplier — an E-mini S&P contract is 50 times the index level. In crypto CFDs, one lot is typically one unit of the underlying coin.

Profit and loss are driven by notional exposure. A 1% move against a $108,000 notional position costs $1,080 whether you posted $200 or $5,000 of margin to open it.

Traders who think in margin terms consistently underestimate their exposure, because a small margin figure feels like a small position. Thinking in notional makes the actual size of the bet visible.

Value per point follows directly from notional. One standard EUR/USD lot has a notional of roughly $108,000 and a pip value of about $10 — one pip is 0.0001, and 0.0001 × 100,000 units equals $10.

That $10 per pip is the number that feeds your position sizing formula. Getting notional right is what makes the sizing calculation correct rather than approximate.