If derivatives are derived from their underlyings ( stock or futures)
how can they ever be bigger than 3 times world GDP !!!!
US debt is ~15 Trillion $ but US banks seem to have 100s of trillions of dollars in derivative market exposure.
Are these strange things are possible because banks somehow borrow from future time and trying to include future GDP as underlying !!???
JP Morgan lost 2 Billion in derivatives market
but their net exposure is 70.1 Trillion ( yes T-r-illion)
collectively US banks have 200 Trillion $ derivative exposure !!!
can some one make sense of this piece of news !