Profit and Loss Calculations: Rapid Fire

What this video covers

• Why a long profits when price rises (exit minus entry) and a short profits when price falls (entry minus exit), and how exam stress baits you into flipping the subtraction
• How the contract multiplier turns raw price change into dollars, and why corn at 1 cent per bushel and E-mini S&P 500 at 1.00 index point both equal $50 per contract
• The three-step drill for gross profit or loss: directional price change first, then multiply by the contract multiplier, then scale by number of contracts
• Why spread profit depends only on the change in the spread gap, not on individual leg prices, and how to avoid inventing phantom leg prices on exam day
• What a round-turn commission is: one charge covering complete entry and exit, subtracted once per contract, and why it always moves the result in the losing direction
• How net profit equals gross profit minus total round-turn commissions, and why a $200 gross loss plus a $50 commission becomes a $250 net loss
• Why return on margin equity divides net profit by initial margin deposited, not full contract value, and why futures margin as a performance bond carries zero interest