Notional Volume

Notional volume is a specific measure of trading volume within a given timeframe and is often considered alongside market value. Market value represents the current price at which a security can be bought or sold through a brokerage or exchange service. For example, let’s consider a call option representing 100 shares of a particular stock with a strike price of $30. While it may trade on the market for $1.50 per contract (resulting in a market value of $150), its notional value would be $3,000 (100 shares x $30). Notional volume provides insights into the classification of trading activity.