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Sorry...Notional Value would be the face value of the instrument. The
notional value of an S & P future would be the last trade X the
multiplier (250). So if the S & P were at say a 1,000.. each future
would represent $250,000 in notional value.
LTCM carried about a trillion dollars in notional with about 4 billion in
capital. That is huge leverage.
ariel@xxxxxxxx wrote:
> R/T's
> I have been following the posts about LTCM with eager interest. I must
> say there have been some wonderful posts that have helped explain what
> went on with them.I have heard the term "notionally
> funded" in regards to LTCM. Would someone please explain this term.
> thanxs Harry
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