Things you always wanted to know the answer to [Vol. 2]
Discussion
Just watched trading places.
Great film but could somebody explain the trading bit at the end. I get the report but but here is what I don't understand.
They walk on the floor when price is high and yell sell 1) they don't own any frozen orange juice what are they selling
Then when price is low they buy 2) why ? What are they going to do with it and who are they then going to sell it to.
And 3 what are all those bits of paper.
Great film but could somebody explain the trading bit at the end. I get the report but but here is what I don't understand.
They walk on the floor when price is high and yell sell 1) they don't own any frozen orange juice what are they selling
Then when price is low they buy 2) why ? What are they going to do with it and who are they then going to sell it to.
And 3 what are all those bits of paper.
Boozy said:
Disagree, my one year old can't walk yet but is steady on her feet when holding on to something, you put music on and she sways her hips and starts "dancing", same if she's sat in her high chair and you put music on, she starts to sway and giggle. It's got the square root of nothing to do with not falling over.
Yes okay. If you can't google 'baby dancing' then try 'fine motor skill learning in babies'. It's good you encourage her to practice movements so do carry on.Pesty said:
They walk on the floor when price is high and yell sell 1) they don't own any frozen orange juice what are they selling
Then when price is low they buy 2) why ? What are they going to do with it and who are they then going to sell it to.
And 3 what are all those bits of paper.
They come out even on the day - net no frozen orange juice bought or sold. Not sure about the bits of paper, it's been a while since I saw it, orders/trades probably.Then when price is low they buy 2) why ? What are they going to do with it and who are they then going to sell it to.
And 3 what are all those bits of paper.
Prior to the trades all being done by computer the traders would, well, trade their stocks by giving over pieces of paper with the trades which would then be manually entered by the runners on machines on the outskirts of the room.
Regarding the trades and their game plan, they did come out, mainly because they knew what the report would be and they gave over a false report. I'm not sure quite how they made the money though as they sold high and bought low from what I remember.
Regarding the trades and their game plan, they did come out, mainly because they knew what the report would be and they gave over a false report. I'm not sure quite how they made the money though as they sold high and bought low from what I remember.
MissChief said:
Prior to the trades all being done by computer the traders would, well, trade their stocks by giving over pieces of paper with the trades which would then be manually entered by the runners on machines on the outskirts of the room.
Regarding the trades and their game plan, they did come out, mainly because they knew what the report would be and they gave over a false report. I'm not sure quite how they made the money though as they sold high and bought low from what I remember.
Quite a good strategy, I would have thought!Regarding the trades and their game plan, they did come out, mainly because they knew what the report would be and they gave over a false report. I'm not sure quite how they made the money though as they sold high and bought low from what I remember.
True, but from what I remember, the price was high when they bought and low when they sold as they bought first and the price plummeted?
https://www.youtube.com/watch?v=1tmI867fAYU
Naughty word. Seems to be cut slightly but from what's in the clip they bought high and then sold low. Not sure how they made money that way.
OK, from a comment on that YouTube clip:
https://www.youtube.com/watch?v=1tmI867fAYU
Naughty word. Seems to be cut slightly but from what's in the clip they bought high and then sold low. Not sure how they made money that way.
OK, from a comment on that YouTube clip:
YouTube commenter said:
they are buying future contracts on orange juice which basically is they bought large amounts of oranges to be delivered to them in the future.
the crop report is key here. The dukes had false information telling them that the weather hurt orange production. If that were the case then stock prices would sky rocketed on the OJ commodities future contracts when the crop report was released as oranges would be more valuable because the supply of oranges are down. The Dukes spent more money than they had because they thought the value of stock they bought would be worth several times more than what they paid after the crop report came out.
However when the real crop report was released stating that the weather had no effect the stock prices Plummeted because there was an abundance of oranges. when this occurred the stock the dukes paid so much more turned out to be worthless and they went bankrupt.
to learn more on this Google it the is allot out there
to put it simply:
Someone who information that the widget would be the hottest gadget on the market so they went into debt buying hundreds of thousands of widgets thinking they would be worth more than they paid for them then a report came out saying the widgets were worthless. So the widgets they bought for $100 each they thought would end up being worth $!000 each after a new report was released ended up only being worth $1 each after the report and they ended up going bankrupt.
Not sure how Dan and Eddie got rich from it though?the crop report is key here. The dukes had false information telling them that the weather hurt orange production. If that were the case then stock prices would sky rocketed on the OJ commodities future contracts when the crop report was released as oranges would be more valuable because the supply of oranges are down. The Dukes spent more money than they had because they thought the value of stock they bought would be worth several times more than what they paid after the crop report came out.
However when the real crop report was released stating that the weather had no effect the stock prices Plummeted because there was an abundance of oranges. when this occurred the stock the dukes paid so much more turned out to be worthless and they went bankrupt.
to learn more on this Google it the is allot out there
to put it simply:
Someone who information that the widget would be the hottest gadget on the market so they went into debt buying hundreds of thousands of widgets thinking they would be worth more than they paid for them then a report came out saying the widgets were worthless. So the widgets they bought for $100 each they thought would end up being worth $!000 each after a new report was released ended up only being worth $1 each after the report and they ended up going bankrupt.
Another youtuber said:
"Winthorpe and Valentine first "sell" FCOJ futures at roughly $1.45 per unit, a price inflated by the Dukes themselves (the Duke Brothers' buying leads other traders to believe that the Dukes are trying to corner the market, causing a buying frenzy). Then, when the price falls as a result of the release of the real crop report indicating a good harvest, Winthorpe and Valentine buy futures at roughly $0.22 per unit. Thus, for every future unit they had previously sold at $1.45, they purchase a matching amount for only $0.22, resulting in a profit of over $1.20 per unit (over 545%)."
That explains it, they used the money prior to that days trading to buy.Edited by MissChief on Monday 26th January 03:13
goldblum said:
singlecoil said:
SpeckledJim said:
CRA2Y said:
Assuming both at their peak - who would win:
Mike Tyson vs Bruce Lee ?
Tyson by a mile. Mike Tyson vs Bruce Lee ?
Tyson although not fast by Lee's standard is not slow either, and for Lee to inflict any damage he needs to come within reach.
gazzarose said:
Whats the deal with the sprung bed on some trolleys in BandQ and Wickes? They're only lightly sprung so can't be anything useful. Is it purely just to let water run off. If it is, there must be simpler (and cheaper) ways of doing that.
It's so they lock together when not being used. MissChief said:
Another youtuber said:
"Winthorpe and Valentine first "sell" FCOJ futures at roughly $1.45 per unit, a price inflated by the Dukes themselves (the Duke Brothers' buying leads other traders to believe that the Dukes are trying to corner the market, causing a buying frenzy). Then, when the price falls as a result of the release of the real crop report indicating a good harvest, Winthorpe and Valentine buy futures at roughly $0.22 per unit. Thus, for every future unit they had previously sold at $1.45, they purchase a matching amount for only $0.22, resulting in a profit of over $1.20 per unit (over 545%)."
That explains it, they used the money prior to that days trading to buy.They didn’t actually need any money up front to do what they did because they bought and sold an equal amount during the day.
You only need cash to cover any outstanding trades at the end of the day.
(That’s not realistic but the storytelling would have been very tedious to go through full personal account compliance rules!)
They “sold” the futures at $1.45.
In this context that means that they sold a contract with another trader to guarantee paying that trader $1.45 for OJ at a certain point in the future.
No one in this scenario gives a crap about actual deliveries of OJ – they are just speculating on the price.
(No one actually rocks up with a tanker full of OJ and demands payment – they close out the contracts in cash before that happens.)
At this point W&V are effectively short OJ – they will make money if the price falls between now and when the contract is up.
The guy they “sold” a contract to is betting the price will rise because of the rumoured bad weather.
A rumour that exists because the Dukes are buying and everyone thinks the Dukes know something.
So say it was April 2015 futures and by April the price has gently dropped to $1.40, W&V can close the contract with a 5cent per contract profit.
Vice versa if it climbed to $1.50 they would be out of pocket.
However, because they know the news for THAT ONE DAY and the weather was OK there is no expected shortage of OJ and the price immediately drops on the release of that news, they close out ALL their trades for that $1.23 profit per contract. Making them $$ with no money down.
Since the Dukes were making a similar LOSS on each contract, they made huge losses and went bust.
walm said:
MissChief said:
Another youtuber said:
"Winthorpe and Valentine first "sell" FCOJ futures at roughly $1.45 per unit, a price inflated by the Dukes themselves (the Duke Brothers' buying leads other traders to believe that the Dukes are trying to corner the market, causing a buying frenzy). Then, when the price falls as a result of the release of the real crop report indicating a good harvest, Winthorpe and Valentine buy futures at roughly $0.22 per unit. Thus, for every future unit they had previously sold at $1.45, they purchase a matching amount for only $0.22, resulting in a profit of over $1.20 per unit (over 545%)."
That explains it, they used the money prior to that days trading to buy.They didn’t actually need any money up front to do what they did because they bought and sold an equal amount during the day.
You only need cash to cover any outstanding trades at the end of the day.
(That’s not realistic but the storytelling would have been very tedious to go through full personal account compliance rules!)
They “sold” the futures at $1.45.
In this context that means that they sold a contract with another trader to guarantee paying that trader $1.45 for OJ at a certain point in the future.
No one in this scenario gives a crap about actual deliveries of OJ – they are just speculating on the price.
(No one actually rocks up with a tanker full of OJ and demands payment – they close out the contracts in cash before that happens.)
At this point W&V are effectively short OJ – they will make money if the price falls between now and when the contract is up.
The guy they “sold” a contract to is betting the price will rise because of the rumoured bad weather.
A rumour that exists because the Dukes are buying and everyone thinks the Dukes know something.
So say it was April 2015 futures and by April the price has gently dropped to $1.40, W&V can close the contract with a 5cent per contract profit.
Vice versa if it climbed to $1.50 they would be out of pocket.
However, because they know the news for THAT ONE DAY and the weather was OK there is no expected shortage of OJ and the price immediately drops on the release of that news, they close out ALL their trades for that $1.23 profit per contract. Making them $$ with no money down.
Since the Dukes were making a similar LOSS on each contract, they made huge losses and went bust.
After seeing SOTW is 5 valve per cylinder still current?
goldblum said:
singlecoil said:
SpeckledJim said:
CRA2Y said:
Assuming both at their peak - who would win:
Mike Tyson vs Bruce Lee ?
Tyson by a mile. Mike Tyson vs Bruce Lee ?
Lee's best punch wouldn't match any of theirs, yet Lee would be lifted off his feet every time Tyson connected.
Of course he's an amazing physique, but the maths just doesn't work for him. Heavyweights punch with double the pressure of flyweights, and are accustomed to, and capable of, receiving blows the same size.
Unless Lee is allowed the Kung Fu Kick in the Knackers. In which case I'm changing my mind.
SpeckledJim said:
Unless Lee is allowed the Kung Fu Kick in the Knackers. In which case I'm changing my mind.
If Lee was allowed to kick he'd just keep his distance and low-kick Tyson's knees until Mike was unable to walk, then pick him off. There is previous for these kind of fights (Ali vs some karate guy etc). Main thing would be to keep Tyson out of biting range.
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