The scale of derivatives is insane but the really crazy part of it is that much of it is derivatives of derivatives. Like futures are a derivative and options are a derivative of them. And it’s possible to place a bet on the price movement of options, effectively a derivative of a derivative of a derivative.
The whole system is awash in counterparty risk. In musical chairs, there’s one less chair than the number of people playing when the music stops. But with derivatives, when the music stops there will be only one chair.
It is something I am going to have to look into further as it is so massively unintuitive for me that I feel I must. This system is unsustainable and inject all the other pressures - it is going to break hard.