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Notional Limit : In FOREX/FX trading terms notional amount/notational amount is the nominal or face amount. It is used to calculate the payments made.Accelerating swap is a swap whereby the notional value is increasing over time. A tool used to limit the notional amount invested in a position or a asset. Ex: A trader can set a maximum limit of $100,000 that can be invested in asset A and if the limit is reached further investment in asset A is not done. Advantages of Notional Limit: • Easy to calculate • Easy to explain Disadvantages of Notional Limit: • Cannot be aggregated across assets • Does not take into account the risk factors in a position Accreting Principal Swap - Forex Term : Accreting principal swap is a swap whereby the notional value is increasing over time Exposure limit: Exposure LimitVARDefinitionLimit amount of loss by eliminating the position after threshold loss is reachedLimit on notional amountLimits to risk factor exposuresMeasure of loss over a defined period of time at a particular confidence level in normal market conditionsWhen it is appliedAfter loss has occurredAfter loss has occurredAfter loss has occurredBefore the loss has occurredDoes Risk Factors is taken into consideration