Options are the Biggest market: There is $1.2 quadrillion invested in derivatives alone.

lawrence-lugar

lawrence-lugar

This is how much money exists in the entire world, in one chart"
http://www.marketwatch.com/story/th...s-in-the-entire-world-in-one-chart-2015-12-18

Options are Huge...it dwarfs everything else big time. :eek: -- i thought Forex was the biggest market in the world...but it pales in comparison to the derivatives/options market.
Options_derivatives.png
 
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lawrence-lugar said:
Options are Huge...it dwarfs everything else big time. :eek: -- i thought Forex was the biggest market in the world...but it pales in comparison to derivatives/options market.
More...


They are probably using the absolute value of the option strikes to come up with such a huge number.

  • Bought 1 GOOGL Dec 2015 790.00 call at $2.35, debit $235.00
  • Sold 1 GOOGL Dec 2015 790.00 call at $1.60, credit $160.00
  • IMO ..... The absolute value of the above transactions is (235.00+160.00) = $395.00
  • But The Money Project is using the option strikes (790.00*100+790*100) = $158,000.00



:)
 
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Q
FINANCIAL IMPLOSION: Global Derivatives Market at $1,200 Trillion Dollars … 20 Times the World Economy
By Washington's Blog
Global Research, May 20, 2012
Washington's Blog 20 May 2012


http://www.globalresearch.ca/financ...lion-dollars-20-times-the-world-economy/30944

For example, one blogger wrote last year:

Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion.

Smart guys like bond trader Jeffrey Gundlach said last year that we’ve got a quadrillion dollar derivative overhang, the government hasn’t done anything to fix the basic problems in our economy, and so we’ll have another crash.

But I’ve now found an estimate from a top derivatives expert who confirms the claim.

Specifically, Paul Wilmott – who has written numerous books on the subject – estimated the number last year at $1.2 quadrillion:
UQ
 
OddTrader said:
Smart guys like bond trader Jeffrey Gundlach said last year that we’ve got a quadrillion dollar derivative overhang, the government hasn’t done anything to fix the basic problems in our economy, and so we’ll have another crash.
More...
it's the nature of the market - it always crashes eventually, doesn't it?

marc
:cool:
 
Makes sense, I trade the SPY ETF options. Lots of liquidity and volume for those options as well. It would have been nice if they broke it down by what type of derivative.
 
OddTrader said:
Q
FINANCIAL IMPLOSION: Global Derivatives Market at $1,200 Trillion Dollars … 20 Times the World Economy
By Washington's Blog
Global Research, May 20, 2012
Washington's Blog 20 May 2012


http://www.globalresearch.ca/financ...lion-dollars-20-times-the-world-economy/30944

For example, one blogger wrote last year:

Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion.

Smart guys like bond trader Jeffrey Gundlach said last year that we’ve got a quadrillion dollar derivative overhang, the government hasn’t done anything to fix the basic problems in our economy, and so we’ll have another crash.

But I’ve now found an estimate from a top derivatives expert who confirms the claim.

Specifically, Paul Wilmott – who has written numerous books on the subject – estimated the number last year at $1.2 quadrillion:
UQ
More...
Well if Paul W says so it must be true. After all, he's written numerous books on the subject. We little traders here could never ever figure this out on our own.
 
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