Gross Profit on Speculative Trades

What this video covers

• The universal gross profit or loss formula: price change times contract multiplier times number of contracts, and why a speculator has no offsetting physical position
• How direction flips the subtraction: exit minus entry for long positions, entry minus exit for short positions, and why the favorable move must come out positive
• The contract multiplier concept: each cent or point of price movement converted to dollars through a fixed product-specific multiplier, such as $50 per one-cent bushel move for corn
• Long trade mechanics: a bullish position that profits when price rises, with a worked single-contract corn example showing both gain and loss scenarios
• Short trade mechanics: a bearish position that profits when price falls, with a worked three-contract corn example and the scaling logic at the end of the equation
• Why forgetting the multiplier is the most common gross profit error, and why a price change in cents or points is never the dollar answer until multiplied
• The exam trap of instinctively thinking profit means the number went up, which is backwards for short positions where falling prices create gains