So what really ends of happening in the movie is this the Dukes' broker buys contracts like crazy believing that the crop is bad (less oranges coupled with same demand means higher prices). In the movie, they have to settle for "$394 million" due to the margin calls. How did Dan Aykroyd and Eddie Murphy win at the end of Trading Places? So in practical terms every contract is for 15,000 pounds of OJ at $1.45/pound. Eddie Murphy's Trading Places is one of my favorite movies of all time. Thank you for using my photo ( oranges @ yinnxp's Flickr ), kindly contact me at the email provided :). Trading Places is the farthest-reaching FREE vacation rental & timeshare exchange network. 1401 John F Kennedy Blvd Philadelphia, PA 19102. Contents1 The key skill of trading places ending explained is the ability to hear others.2 The gift of persuasion.3 Strategy and trading places ending explained. Thank you for using my photo taken from yinnxp's flickr. questions. For ease of calculation, we can think of it as them trading on average at $1.22. This is commodities trading. However, I have always felt a twinge of guilt when I watched the movie with other people. It starts with some insider information. To that end, you should know that many or all of the companies featured here are partners who advertise with us. I can't tell you how many nights I have laid awake (only after every viewing actually) trying to figure out how they busted the Dukes. The protagonist prevails uncovering the crime ring of nastiness and exonerates her brother. Also -- even in 1980, the (I'm guessing) out of the ordinary trading patterns for Duke & Duke/Duke personal accounts would've attracted *some* attention, and since the Duke brothers were no longer major movers and shakers, they might not have been able to buy their way out of CFTC/state investigations. ... Trading Places is the greatest Wall Street movie ever made. Essentially he is making a bet that the price will fall. Unlike conventional stock, futures contracts can be sold even when the seller does not yet own any of the commodity. 7 calle 1, Suite 204 You get a timeless comedy classic laced with sidesplitting, satiric humor. How To: Remove Items From Your Credit Report, How To: Boost Your Credit Card Approval Odds, Procrastinators, It's Not Too Late to Refinance Your Mortgage and Save Thousands, Making Over $65K Per Year? Once the price gets to a high point, and the whole market thinks the price will only go up, Aykroyd calls out a promise to sell OJ at that high price in the future. In Trading Places, Eddie Murphy and Dan Aykroyd sell high and then buy low. By capitalizing on this knowledge (and the Duke brothers' missteps), the protagonists are able to profit by manipulating the futures market as follows: Unlike conventional stock, futures contracts can be sold even when the seller does not yet own any of the commodity. For more information, read. Now I don't feel so alone in my confusion. out loud so hard while reading your second paragraph. The contract is called a "rice ticket." thanks! A contract to sell, say, 1000 pounds of FCOJ at $1.50 per pound in February merely indicates the seller's obligation to provide and the buyer's obligation to purchase the product at the specified price and time. Also, this is NOT the "stock market". Maybe we'll revisit it around Christmas, when they tend to play this movie nonstop. I'll take a rain check on the Digg. In English that means that the person A is promising to buy and seller B is promising to sell 3,000,000 pounds of orange solids at $1.45 per pound due in April (a $4,350,000 transaction). Thankfully I put the right search terms into Google to find this post! In fact, Billy Ray and Lewis deliberately do not trade with the Duke's trader, so that they will be left holding a bunch of expensive "buy" contracts at the end of the day. Witness. 3. But in order to get the money to pay for the rice on Jan. 1 he sells his ticket (contract). Trading Places location: the Winthorpe house: Delancey Street, Philadelphia. He agrees to buy the warehoused rice at a certain price, say 20 cents per lb. Wikipedia is a great source (generally, I have found) for explaining finance terms. Thank you for the explanation!! Soundtrack Credits . So let's look at one trade you can hear which is "200- $1.45 April!". However, it seems likely that Billy Ray and Lewis were trading on margin, since that is the only way to turn $500k into F-U money for 5 people. (Also, the Hunt Brothers going bust almost led to their main trader going bust, and folks were worried the reverberations of people owing other people would've led to some bigger scalps getting taken.). Click here to learn more about Trading Places Prime. When it turns out that the leaked report they were given was fraudulent and the true report is revealed, the price begins to plummet before they are able to sell off their contracts. Open in Google Maps; 3. You've put to rest one of those lingering unanswered questions I've always wanted resolved...and I'm NOT joking!! 2. The price of a commodity will be stopped if it ever fluctuates more than 10 cents (either direction) during one trading day. Set mainly in Philadelphia, where ‘legless’ Billy Ray begs in a wintry Rittenhouse Square, at 18th and Walnut Streets, to the southwest of the city centre. After seeing the movie "Trading Places" (1983), starring Eddie Murphy and Dan Aykroyd, for the thousandth time during the holiday season, I decided to write a quick post explaining what happened at the end of this movie that gets so many people puzzled … I just watched the movie again for the umpteenth time, and your explanation moved me closer to understanding the deal than any of the others. The value skyrockets. In the film, Philadelphia's City Hall is featured in a climactic court scene. Dead end. A major firm like Duke & Duke going bust would've required their positions in gold, silver, oil, cocoa, and other futures to get liquidated (or at least offloaded) and give a slight bump down to those commodities (depending on how quickly they were sold). He is hoping he can turn around and sell it to grocery stores for 40 cents a lb a few days later. I mean why did they start buying knowing the price is continuously going down? Ultimately the choice is yours. To find out more about our editorial process and how we make money, click here. But they do not affect the actual opinions and recommendations of the authors. If you have $500,000 you could buy $1,000,000 worth of stocks. 4. Dorado, PR 00646, Metro Office Park 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. This helped me understand the movie.. My professor told us to watch this movie and when that scene came out, I was like...what the hell is going on? Though it is not stated in the movie exactly how much they make, if they invested roughly $500,000 from a combination of Winthorpe/Valentine's investment, the Duke's money from buying the "fake" report from a fake Clarence Beeks (Paul Gleason) and Coleman's and Ophelia's savings, they would have turned it into over $2.7 million. It is safe to say that the trading places ending explained is an art. 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