[proxy_user]

It is important to understand what is meant by ‘notional value’.

For example, if I bet you $1 that the Dow will go up tomorrow, the notional value of that derivative is the dollar volume of all the Dow stocks traded tomorrow. However, the most I can gain or lose is still $1.

[allmost]

The notional value was sold as leverageable. The process was repeated numerous times. That Dollar turned into millions. Out of thin air and crafty accounting.