Trading Places Ending Explained, Plot, Summary, and More
by Reshwanth A
Updated Mar 29, 2023
Trading Places Ending Explained?
Valentine and Winthorpe made a lot of money on the commodities market by manipulating the price of Concentrated Orange Juice Futures contracts. They tricked the Dukes into buying up as many contracts as possible to corner the market, but other brokers caught on and also bought futures, driving up the price. Valentine and Winthorpe then sold their futures at an inflated price and bought them back when the value plummeted after the publication of a normal crop report. The Dukes were left with 100,000 contracts they couldn't sell, resulting in a loss of 394 million pounds. The article details the process of how the scam was executed and how it ultimately backfired on the Dukes.
Trading Places Plot Summary
Brothers Randolph and Mortimer Duke purchased a brokerage firm called Duke & Duke Market Brokers located in Philadelphia, Pennsylvania. They believed in the nature vs nurture issue and conducted an experiment to switch the lives of two individuals from opposite sides of the social hierarchy to observe the results. They selected Louis Winthorpe III and Billy Ray Valentine, with Winthorpe being framed for false accusations and fired from his job. The Dukes bailed out Valentine and gave Winthorpe's job to him, leading Valentine to become a successful businessman while Winthorpe befriended Ophelia. On New Year's Eve, they delivered a fake report showing high orange crop yields, which they sold at an unreasonable price. After the broadcast of the actual crop report, they bought it back at a lower price, turning a huge profit. The Dukes couldn't supply the required $394 million, leading to their downfall, while Valentine, Winthorpe, Ophelia, and Coleman went on vacation to a tropical beach, and Beeks and the gorilla were sent to Africa.
How Much Money did they Make at the End of Trading Places?
In the movie "Trading Places," Winthorpe and Valentine, played by Dan Aykroyd and Eddie Murphy, respectively, execute a successful commodities trading scheme. Although not explicitly stated, it's estimated that their investment of $500,000, combined with the Dukes' funds, would have yielded over $2.7 million in profit. Additionally, it's suggested that they also bought futures on margin, which resulted in millions more in profit. Using the numbers provided in the film, the total profit can be calculated to be $252 million. This impressive sum underscores the impact that skilled trading can have in the financial world. While the movie's plot may be fictional, it still serves as an interesting commentary on the power of the markets and the potential rewards that come with successful trading. Overall, the film provides a fascinating look into the world of finance and how even a small investment can lead to significant returns when handled correctly.
Trading Places Where to watch?
Trading Places is a comedy film starring Dan Aykroyd, Eddie Murphy, and Ralph Bellamy, and is now available for streaming on various platforms including ROW8, Prime Video, Redbox, Vudu, and Apple TV, on your personal devices. The movie can be purchased on Microsoft Store, AMC on Demand, Apple TV, Amazon Video, Google Play Movies, YouTube, Vudu, Redbox, and DIRECTV. Alternatively, you can also download or rent Trading Places on Amazon Video, Google Play Movies, YouTube, Microsoft Store, AMC on Demand, Apple TV, Vudu, Redbox, DIRECTV, and Spectrum On Demand online.
Trading Places Ending Scene
Various publications have attempted to explain how Valentine and Winthorpe made a large sum of money on the market while continuously ruining the Dukes. The fake crop report created by Valentine and Winthorpe made the limited stock more valuable. The Dukes tried to buy as much Frozen Concentrated Orange Juice as possible, but the other brokers realized what the Dukes were doing and joined in buying futures. This demand continuously raised the price to $1.42 per pound. Winthorpe and Valentine began selling futures at this unreasonable price, and while it was at its peak, the contracts required them to supply FCOJ in April. Faking the crop report caused the value of FCOJ to rise above $1.42, and the other brokers heavily purchased from the pair. Once the real crop report was published, the orange crop was normal, and there was no shortage of FCOJ. The brokers attempted to sell their futures and limit their financial losses. Winthorpe and Valentine then bought back the futures from the brokers at the lower price of 29 cents. The difference was their profit. They had sold FCOJ for a high price and bought it back at a lower price, earning a profit. Meanwhile, the Dukes had bought a number of FCOJ futures, around 100,000 contracts, or 1.5 million, and were unable to sell any of them. When trading closed, they met the margin call holding the futures contracts. In addition to their financial loss of buying futures at $1.42, which were now worth only 29 cents, the margin call for holding the futures gave a total loss of $394 million, which they did not have for the sale of all their properties.
Trading Places Ending Explained - FAQs
Trading Places is a 1983 American comedy film that tells the story of an upper-class commodities broker and a homeless street hustler whose lives cross paths when they are both unknowingly made part of an elaborate bet by two wealthy brothers.
The movie stars Dan Aykroyd as Louis Winthorpe III, Eddie Murphy as Billy Ray Valentine, and Ralph Bellamy and Don Ameche as the wealthy Duke brothers, Randolph and Mortimer.
Louis and Billy make money by buying and selling frozen concentrated orange juice (FCOJ) futures on the commodities market. They manipulate the market by creating a fake crop report that drives up the price of FCOJ futures, then sell the contracts at a high price and buy them back at a lower price, earning a profit.
The bet is whether Louis, a wealthy commodities broker, can be transformed into a criminal while Billy, a homeless street hustler, can be trained to become a successful commodities trader.