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All of the World’s Money and Markets in One Visualization

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Happy new year s and S'rs.

I've got plenty of reading to catch up on how you all have been going. I like the travel thread.

On this graph Cobrams posted and the description it is not clear to me whether standard contracts are included in the derivities number? Ie you will sell me 500mtonnes of ore at 45 dollars per tonne over the next twelve months. If it does include the future physical trades I guess one would expect it to be a huge number compared to the value of global stock markets. If not why are there so many people hedging / speculating on derivitives? Is this a new thing I wonder?

Found this report from 2012:

From the first para: 640trillion notional value with a market value of 27trillion.

I take it this means on average taking a $1000 position in a derivative exposes you to $23,700 odd of the underlying commodity?

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