WHAT IS A NOTIONALLY-FUNDED ACCOUNT, AND CAN I USE NOTIONAL FUNDS?
A Notionally Funded account is one in which the nominal account size actually exceeds the amount of cash and equivalents used to fund the account. Example: A client opens a $200K account and deposits only $100K. This account would be described as 50% notionally funded. Bear in mind that notionally funding an account greatly increases the positive rate of return on profits as well as the negative rate of return from losses in the account.
