US Commercial banks alone own an unbelievable $202 trillion in derivatives.

[Landis82]

Quote from ByLoSellHi:

Any yet you post another non-trading comment in the life of your supertrader career.

Schmuck.

Feel free to post a screen-shot of your trading this morning and I will refrain from calling you out as a "prop-poster" that doesn't TRADE at all.

Your move.

 

[ByLoSellHi]

Quote from Landis82:

I am a supertrader extraordinaire who needs to obviously monitor markets closely, but can't resist whining about people who post non-trading issues. In fact, 90% of my 7,500 posts are whining and crying and ranting and pouting. Where is my bottle? Where is my pacifier? Where is blankie? WAAAAAAAAAAAHHHHHH!!!!!!!!!!!

 

[Martinghoul]

Quote from ByLoSellHi:

The article I posted speaks exactly to the point you are complaining about.

Did you even read it?

Here's the pertinent section:

"Bear in mind, these are “notional” values of derivatives, not the amount of money “at risk” here. However, if even 1% [a conservative figure just for the sake of being conservative] of the $1 Quadrillion is actually at risk, you’re talking about $10 trillion in “at risk.”

Actually, how about a simple illustration of how fallacious the author's logic is? Let's use a simple derivative, a short-term interest rate (STIR) future, e.g. eurodollar.

Currently, the Sep9 Eurodollar contract open interest stands at arnd 1mn. A single Eurodollar contract notional value is $1mn, which, basically, suggests that the mkt's total notional exposure is arnd $1trn, which is rather large. However, the risk of one contract is only $25/bp. If you do the arithmetic, you'll have to conclude that the author's 1% of notional at risk assumption suggests that they think a move of 400bps in the front Eurodollar contract is "conservative".

It's just crap reporting, is all...

 

[ByLoSellHi]

Quote from Martinghoul:

Actually, how about a simple illustration of how fallacious the author's logic is? Let's use a simple derivative, a short-term interest rate (STIR) future, e.g. eurodollar.

Currently, the Sep9 Eurodollar contract open interest stands at arnd 1mn. A single Eurodollar contract notional value is $1mn, which, basically, suggests that the mkt's total notional exposure is arnd $1trn, which is rather large. However, the risk of one contract is only $25/bp. If you do the arithmetic, you'll have to conclude that the author's 1% of notional at risk assumption suggests that they think a move of 400bps in the front Eurodollar contract is "conservative".

It's just crap reporting, is all...

You may be perfectly right, and Landis would still be a big, fat crybaby.