There is not $500 trillion on the planet. Maybe if they count all the gold that will be mined, and all the oil that will be lifted, and all the subdivisions that will be built, and all the cars that will be manufactured, and all the corn that will be harvested, etc.
I agree.
Maybe if they count all the gold that will be mined, and all the oil that will be lifted, and all the subdivisions that will be built, and all the cars that will be manufactured, and all the corn that will be harvested, etc.
Think of it like a sports bet. Say you bet $100 on the NBA All Star Game. Your risk is $100. The risk of the person you bet with is also $100. The notional value of the bet might be the value of every team in the league....the value of the entire NBA. Billions and billions of dollars.
Wow, how can you ever cover that bet?
That's kinda how they count derivatives.