i mean, really, did you even read what you wrote?have you ever heard a government bond trader refer to hs book this way?sleepinggiant did and he/she asked the question. although it was probably not a govy trader.How many of your books have you ever referred to in this way? I am genuinely interested to know. Mine, and my staff's, if they have ever been referred to as having a "size", would only ever use this phrase with respect to P+L, but it would be rarely used.this does not make any sense. how would you know whether they were doing well or not. as discussed previously, making $10M on $100M is different than making $10M on $1B. of course, as also discussed, notional amount is not necessarily the best way to measure book size. but clearly there must be some way to differentiate book size. i would have to presume that there are different risk limits or capital allocations between traders, even at YOUR firm. but it is clearly possible that a junior trader with small risk limits made more money in a given time period than a more senior one with larger limits. and that would not reflect the size of the book but the profitability of the book. two distinct terms. so even if you disagree with the idea of using notional as the best theoretical measure (which i agree with and said so previously), there must be some metric or group of metrics to qualify and quantify the size of a trader's book.
Last edited by apine
on January 6th, 2007, 11:00 pm, edited 1 time in total.