Target notional

How is target notional calculated?

Multiply the holding's target weight by your capital. A target weight is the share of the portfolio the allocation method assigns to that holding, so its target notional is simply that fraction of the capital you set for the strategy.

where target weight is the holding's share of the portfolio (0–1) and capital is the amount entered on the Holdings view — not the strategy's starting capital, which is a backtest input.

Defaults in Fincanva

• The "Target notional" KPI adds up every holding's target and follows the capital figure the Holdings view is working from.
• Target notional is the ideal, pre-rounding figure; the amount actually put to work is a little smaller once each position is rounded to whole shares.
• Changing your capital rescales every holding's target notional proportionally — the weights stay the same, only the money behind them changes.
• Nothing is traded: these are the target figures Fincanva monitors on paper for a live-followed strategy, not real orders.

Worked example

A holding has a target weight of 10% and you set 25,000 of capital. Its target notional is 0.10 × 25,000 = 2,500 — the position is meant to be worth 2,500. If the instrument trades at 412, that 2,500 only buys 6 whole shares, so slightly less than the full target ends up deployed. The difference between the target and what fits in whole shares is covered by target vs deployed.

A target notional is the money amount a paper target portfolio implies, never a real order, and it is not a recommended amount to invest in that instrument. Fincanva provides no financial advice — see Is this financial advice?.