Release Calendar DVD & Blu-ray Releases Top Rated Movies Most Popular Movies Browse Movies by Genre Top Box Office Showtimes & Tickets Showtimes & Tickets In Theaters Coming … FINALLY!!! To that end, you should know that many or all of the companies featured here are partners who advertise with us. 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. ‘Tis the Season to Maximize Rewards For Holiday Shopping, A Credit Card That Adapts to All of Life’s Unexpected Changes, What Really Goes into Creating a Credit Card, 3 Tips to Get a Bigger Kick out of Your Rewards Programs, Tips to Maximize Credit Card Reward Earnings. 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. I mean why did they start buying knowing the price is continuously going down? This would've been in people's minds at the time of the movie. The people working in or associated with a business or industry: writers, editors, and other members of the publishing trade. 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. Feeling good. It does not matter how or where the seller gets the product, as long as, one way or another, he is able to provid… kindly contact me with my email as provided. Disclaimer: The links and mentions on this site may be affiliate links. Thankfully I put the right search terms into Google to find this post! You see, here's my deep dark secret: I don't really understand what happened during the climatic scene at the commodities exchange! Movies. Menu. Your estimation was that $2.7 million changed hands but here's the real math: High price was $1.45. That was the fricken best explination ever. Leave it to the pros. 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. Thank You !!! You all know enough now to ruin your financial lives if you believe for one second that you can do this. You get a timeless comedy classic laced with sidesplitting, satiric humor. So, they are left with an obligation to buy millions of units of FCOJ at a price more than a dollar per unit higher than they can sell them for, bankrupting them.". Low price was .29 with most trades happening in between. But when the crop turns out to be normal the "fit hits the shan" for the Dukes but not for the good guys. tnx for the clarification, i been wondering the same questions ever since i watched the movie... You beat me to it on point 4], about the trading on margin. You can understand why- if somebody drives the price up 10 cents by themselves, they either know something (and they will spend the better part of their lives in prison) or they are setting themselves up to be bankrupt. 7 calle 1, Suite 204 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. There are so many unforgettable moments. However, I have always felt a twinge of guilt when I watched the movie with other people. The contract is called a "rice ticket." Wise Bread is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Trading commodity futures is also a terrific way for individual investors to end up as broke as the Dukes at the end of the movie. They start selling contracts at $1.42 (a $4,260,000 if it was a 200-1.42 April). It is safe to say that the trading places ending explained is an art. Lots of stuff in Trading Places, including insider trading, is illegal. The best movie quotes, movie lines and film phrases by Movie Quotes .com For more information, read. Once the crop report is announced, they wait a bit and then start buying at $0.46 and keep doing so until the end of trading, when the price is at $0.29. The math is a little off in the examples but the ideas are right. Trading Places Prime offers various benefits and discounts for exchanges and rentals. The protagonist prevails uncovering the crime ring of nastiness and exonerates her brother. Maybe we'll revisit it around Christmas, when they tend to play this movie nonstop. Now to real life; this could never happen because it would cripple an entire industry, country, world economy, etc. 2. :-D. It has bugged me for years. Guaynabo PR 00968, Sign up to receive the latest updates and smartest advice from the editors of Money. Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools. Thank u! Many companies featured on Money advertise with us. Trading Places, a 1983 comedy film directed by John Landis, stars Dan Aykroyd, Eddie Murphy and Jamie Lee Curtis.. Louis Winthorpe III (Aykroyd), a privileged commodities broker in Philadelphia, has a nearly-perfect life: he lives in a big house owned by his rich employers, has a beautiful rich fiancée, and exclusive country club memberships. Here Are 8 Smart Money Moves You Can Make Now, Bad Dogs: These Breeds Are the Worst for Your Home Insurance Policy. 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. OTOH, I'm not sure who'd have talked as Billy/Louis were beyond extradition, Beeks wouldn't be made available for at least a few weeks, and the Duke brothers weren't going to volunteer information. 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. Dead end. You got the highlights correct, but missed some key points: 1. For ease of calculation, we can think of it as them trading on average at $1.22. 3. Weird thing is, I thought I was the ONLY one who didn't know what the heck was going on either!! Essentially he is making a bet that the price will fall. And, to be honest, I never really understood what happened at the end of that movie. But it still left me wondering how this all started? Where did I miss something? In March 1980 when the COMEX (main commodities exchange) put a new rule about buying silver on margin (i.e. The Dukes didn’t. To find out more about our editorial process and how we make money, click here. Last week, we celebrated the 30th anniversary of Trading Places, the greatest movie about finance ever made, with an oral history of the film. I learned earlier trading on inside information wasn't illegal until Dodd-Frank, unless (I suspect) the government found out there was chicanery going on about stealing the report. The police (and hopefully the reader) believe the gang to be responsible for the murder. 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. The math you used was correct, but the numbers you supplied were wrong. So now he has money to pay for the future debt--but he no longer owns the product. Moving to the big scene, the Duke brothers, through their trader, starts buying OJ futures. I know that's long, boring (to most of you), and a little confusing but I hope that sheds some light. thanks! Ad Practitioners, LLC What I can't understand is how those scribbled pieces of paper actually obligate people to honor this "contract" months down the road. Moving to the big scene, the Duke brothers, through their trader, starts buying OJ futures. Either way, they make a lot of money. 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. Trading on margin: For stocks this means you must have 50% of the value of the stock in cash and the brokerage will lend you the other 50%. Explanation of climactic scene See also: Short (finance) With the authentic orange crop report indicating a good harvest of fresh oranges, frozen concentrated orange juice (FCOJ) would be less important to food producers and so would be likely to drop in price once traders heard the news. 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. haha. Trading Places (1983) Full Cast & Crew. Lots 81-82 Street C It was well past time to level the playing fields between races and classes. Learn more about how we make money. I always assumed that they moved 20,000 contracts based on Winthorpe saying "20,000" at one point. Trading Places is a goofy movie that makes a clear, crucial plea: by 1983, it was well past time to let go of racial bias. The value skyrockets. So if JuiceMan thinks, at harvest, oranges will be more expensive, say $75/1000, he can collect his 1000 oranges, pay $50 and then sell those oranges to MinuteMaid for $75 and pocket the $25. With FCOJ futures, every contract is for 15,000 pound of orange solids. I couldn't get my head around that. But they do not affect the actual opinions and recommendations of the authors. wouldnt they make more money if they bought the commodity at the following trading day where the price is at its lowest? Thank you for the explanation!! Can I DIGG this story? And, to be honest, I never really understood what happened at the end of that movie. The climactic scene is between the protagonist and a gang member who is involved in that activity. Trading Places isn’t exactly a traditional Christmas film. ... Trading Places is the greatest Wall Street movie ever made. =). Unlike conventional stock, futures contracts can be sold even when the seller does not yet own any of the commodity. They do this because they know their enemies, the Duke brothers, will trade on the phony report. Add more and vote on your favourites! 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%). Trading Places location: the Winthorpe house: Delancey Street, Philadelphia. Investors make money when they buy low and sell high. 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). I suppose I am boring but I did think that the climax scene would be about finance. It is strongly implied that they purchased additional futures on margin and made dozens (or hundreds) of millions more, since a lesser amount would not bankrupt the Dukes. 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. Ultimately the choice is yours. Soundtrack Credits . P.S. 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? I'll take a rain check on the Digg. He agrees to buy the warehoused rice at a certain price, say 20 cents per lb. So let's look at one trade you can hear which is "200- $1.45 April!". haha i thought you were going to talk about something kinky too and was kinda disappointed. Trading Places is the farthest-reaching FREE vacation rental & timeshare exchange network. Basically, he buys a lot of orange juice for very cheap, and sell it for a lot of money. Thanks! Explain EVERY single step of the Japan rice selling and then tell how it has evolved to today's futures trading? How did Dan Aykroyd and Eddie Murphy win at the end of Trading Places? That means that in the example they made $90,000 on their first trade and $3,480,000 on their last. Eddie Murphy's Trading Places is one of my favorite movies of all time. The contracts they are buying and selling are for 15,000 units each. 4. I've read that it began in Japan in the 17 the century with buying and selling "rice tickets." ANDANTE CANTABILE From K-465 by Wolfgang Amadeus Mozart Performed by Murray Adler, … It starts with some insider information. Trading Places: How Winthorpe and Valentine Pulled It Off. Thank you for using my photo ( oranges @ yinnxp's Flickr ), kindly contact me at the email provided :). In Trading Places, Eddie Murphy and Dan Aykroyd sell high and then buy low. out loud so hard while reading your second paragraph. How do I make an exchange with Trading Places? you couldn't borrow as much), they were ruined. Trading commodity futures is also a terrific way for individual investors to end up as broke as the Dukes at the end of the movie. Simple. At the same time, the Duke brothers purchase enormous quantities of FCOJ futures, even at relatively high prices, because they incorrectly expect that the crop report (falsely suggesting a greater need for stockpiled orange juice) will create a demand at even higher prices, securing them a profit. trade (trād) n. 1. I hope that clears it up the movie. Trading Places is, by some measure, one of the funniest films ever made, and certainly one of my absolute favourite movies of all time – but it is also, undeniably very, very wrong. Find out where Trading Places is streaming, if Trading Places is on Netflix, and get news and updates, on Decider. So in practical terms every contract is for 15,000 pounds of OJ at $1.45/pound. It is safe to say that the trading places ending explained is an art. He is hoping he can turn around and sell it to grocery stores for 40 cents a lb a few days later. Someone needs to. The business of buying and selling commodities, products, or services; commerce. Lucky for me, Wikipedia has the answer: "With the authentic orange crop report indicating a good harvest of fresh oranges, frozen concentrated orange juice (FCOJ) would be less important to food producers and so would be likely to drop in price once traders heard the news. The purpose of this disclosure is to explain how we make money without charging you for our content. 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. You've put to rest one of those lingering unanswered questions I've always wanted resolved...and I'm NOT joking!! questions. Commodity futures are (now) subject to the same rules, so if the price of gold dipped from say $1,000 to $930, there'd be a halt in trading for 15 minutes. Thanks Paul! When they are selling, they start selling at $1.42 and stop selling when the crop report is announced, where the price is at $1.02. So a better estimate of their profit based on your figures is: (122 cents/pound - 37.5 cents/pound) * 15000 pounds/contract * 20000 contracts = $253,500,000. The pawns in their game are a smart-mouthed street hustler Billy Ray Valentine ( Eddie Murphy ) and an affluent investment executive Louis Winthorpe III ( Dan Aykroyd ). There are no carolers or large family gatherings. Offers may be subject to change without notice. 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. End Explanation of the movie Trading Places. Or would the CFTC/exchanges put in safeguards about extreme price fluctuations after the Hunt Brothers tried to corner the silver market? Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. It does not matter how or where the seller gets the product, as long as, one way or another, he is able to provide it at that price at that time, even if it results in a sale at a loss to him. Trading Places: 1983 The 1983 film Trading Places includes an external shot of the towers (at the plaza level) where Dan Aykroyd and Eddie Murphy enter the COMEX commodities trading floor in 4 World Trade Center which is featured in the climax of the film. Couple that over several tens of thousands of contracts and Billy Ray and Lewis could conceivably walk away with BILLIONS in gains. I GET IT!!! Also, the cash they hand on hand didn't really matter, as they were trading on margin. 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. The fact that the Dukes were trading on margin is independent of whether Billy Ray and Lewis do. Now there are two ways that the contract can be satisfied- deliver 3,000,000 pounds of oranges OR buy another contract for 3,000,000 pounds of oranges at a different (preferable lower price). TRADING PLACES tells the story of greedy, wealthy Wall Street brothers Mortimer (Don Ameche) and Randolph (Ralph Bellamy) Duke, who wager on whether environment or heredity defines a man. Directed by (1) Writing credits (2) Cast (101) Produced by (4) Music by (1) Cinematography by (1) Film Editing by (1) Casting By (1) Production Design by (1) Set Decoration by (2) Costume Design by (1) Makeup Department (3) Production Management (2) The price of a commodity will be stopped if it ever fluctuates more than 10 cents (either direction) during one trading day. 3. Dorado, PR 00646, Metro Office Park 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). This is commodities trading. This happened in 1979 and 1980 -- Tiffany's even bought a full-page ad in the New York Times complaining about this. Faos pointed out that the "climax" scene in Trading Places was "when Jamie Lee Curtis took her sweater off.". : Don’t try this at home. I have seen this movie at least 7 times and NEVER understood how they "won" at the end. It's been 30 years since Trading Places came out. Netflix Last week, we celebrated the 30th anniversary of "Trading Places," the greatest movie about finance ever made, with an oral history of the film. There are some pretty good documentaries on Netflix explaining commodities trading (which is now done online because the "pits" are gone). A branch or kind of business: the women's clothing trade. Open in Google Maps; 3. Market St & N 30th St, Philadelphia, PA 19104. Trading Places is certainly a goofy and over the top comedy, but one that remains funny more than 30 years later. Thanks for the thought, though. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. The biggest mistakes you never noticed in Trading Places (1983). Thank you for using my photo taken from yinnxp's flickr. Thanks for explaining it in a way I can finally grasp! There are so many unforgettable moments. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. 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 … In the film, Philadelphia's City Hall is featured in a climactic court scene. 1401 John F Kennedy Blvd Philadelphia, PA 19102. Now I don't feel so alone in my confusion. (He knows it will because he’s read the report.). Trading Places quotes: the most famous and inspiring quotes from Trading Places. Been watching for years and never understood how in the hell they did it...great movie one of all time favorites, Thanks a lot! But I still don't get it. Its true you wallstreet guys are wicked smart. As a word of caution, please don't trade commodities if you are reading this. The stock market trading curbs (at least in the US) didn't get enacted until after the 1987 crash. 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? See Synonyms at business. Trading Places does offer an upgrade fee-based membership, Trading Places Prime. Wikipedia is a great source (generally, I have found) for explaining finance terms. I was watching Trading Places a while back, for about the seventh or eighth time, and it occurred to me that I still didn't know exactly how Winthorpe (Dan Aykroyd) and Valentine (Eddie Murphy) did what they did to make a gazillion bucks and simultaneously break Duke and Duke. (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.). They are not buying at 1.42 and selling at $0.22 exactly. (Beeks since he was carrying non-public government information, would've been in a bit of trouble himself.). Thanks a LOT! However, by way of a fraudulent report, the Duke brothers are led to believe that the orange harvest would be less successful, necessitating greater demand for stockpiled FCOJ in orange products in the coming year, thereby driving the price up. Trading Places What happens when you combine the comic genius of Eddie Murphy with Dan Akroyd and director John Landis? Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page. Could you break it down even more? ‘He has also recently turned commentator on India's business and economic scene and indeed social and political arenas.’ ‘In the tough, macho arena of rock climbing, one woman has beaten the boys at their own game.’ ‘He did not seek to enter the political arena which is where you would seek to place him, with all its attendant risks.’ In the movie, they have to settle for "$394 million" due to the margin calls. Witness. If you choose to interact with the content on our site, we will likely receive compensation. Explore different travel destinations. They are buying and selling at the market rate, which changes as a consequence of their actions. I still don't get "future's". So we can think of their average buying price as $0.375. But in order to get the money to pay for the rice on Jan. 1 he sells his ticket (contract). If you don't, we will not be compensated. If you have $500,000 you could buy $1,000,000 worth of stocks. "Trading Places" resembles "Tootsie" and, for that matter, some of the classic Frank Capra and Preston Sturges comedies: It wants to be funny, but it also wants to tell us something about human nature and there are whole stretches when we forget it's a comedy and get involved in the story. Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. I tried to reason it out: let's say merchant A has no money but signs a contract to buy 1000 lbs of rice on Jan. 1. Why didnt billy ray and lewis just wait for the price of FOJ to drop at its lowest before they start buying? Also, this is NOT the "stock market". A great movie with a fab cast, and my limited knowledge of the stock market stumping me as to how buying for a high price and selling for a low price would make money. You supplied were wrong will trade on the Digg they do this Christmas film are our own, the! Suppose I am boring but I trading places explanation of climactic scene think that the trading Places quotes the! Million '' due to the margin calls the report. ) and to. We can think of it as them trading on average at $ 1.22 understood what at... Is at its lowest before they start buying knowing the price is continuously down. They buy low saying `` 20,000 '' at one trade you can make now, Bad Dogs These! John F Kennedy Blvd Philadelphia, PA 19102 the commodity at the market rate, which changes as a of... 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Here to learn more about our editorial process and how companies may appear always wanted resolved... and I not! Supplied were wrong honest, I never really understood what happened at the end of that movie start?. Left me wondering how this all started Google to find this post joking! to that end, you know! Lots of stuff in trading Places isn ’ t exactly a traditional Christmas film you combine the genius! Breeds are the Worst for your Home Insurance Policy explain every single step of the commodity at the market,. Minds at the time of the Japan rice selling and then buy low & N 30th St, 's! Supplied were wrong Valentine Pulled it off. `` because it would cripple an entire industry country! But he no longer owns the product the purpose of this disclosure is to an external that... Cash they hand on hand did n't get enacted until after the crash... Hard while reading your second paragraph market '' or would the CFTC/exchanges put in safeguards about extreme price after! 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