# Notional

*Markets & Instruments — Finicade finance glossary*

The face amount a derivative is based on, used to scale its payments — even though that sum usually never changes hands. A $10m interest-rate swap has a $10m notional but only the interest difference is exchanged.

**Related terms:** [Swap](https://finicade.com/glossary/swap), [Derivative](https://finicade.com/glossary/derivative), [Futures Contract](https://finicade.com/glossary/futures-contract)

**Taught in:** Hull Street — Swaps

Source: https://finicade.com/glossary/notional