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Strategies & Market Trends : The coming US dollar crisis
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To: Aloysius Q. Finnegan who wrote (21891)8/9/2009 10:22:21 AM
From: Real Man1 Recommendation  Read Replies (3) of 71456
 
The notional value is abstract value indicating the amount of
leverage. The real value is the real amount for which the contracts
are trading.

Example: a 1200 August SP500 has notional value of
1200, (120,000, since it's a bundle of 100), but I did not
look for what it is trading, probably much less than a buck.
Say, 5c. Then it's real value is 5c, or $5 if you multiply by
100. The call controls $120,000 of sp500, however.

So, real value of 30 trillion means for how much these contracts
can be bought or sold for, notional ( 1 quadrillion) means how much underlying
assets they control. In other words, that stats means derivatives
completely control the underlying markets.
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