Trading Places Final Exchange Scene & Explanation
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The Duke brothers tried to steal the crop report. But Billy-Ray and Lewis, after having been quite ill used by the Dukes, get the real report and give the Dukes a fake.
The Dukes send their trader to the commodities floor with instructions to buy like crazy. Their fake report shows a tough winter, and so they’re betting the price will go way up after the “official” release of the report. The trader starts buying and others see the Dukes trying to corner the market, so they start buying. This drives the price up.
At just the right time, Billy-Ray and Lewis “sell” futures contracts for orange juice. They sell like crazy. They’re selling contracts for orange juice they don’t even own and can’t deliver. (Basically short selling – in commodities all you have to do is be able to deliver at the date in the contract). Their selling drives the price down a bit. It also pads their trading account with a ton of cash.
The secretary of agriculture announces that the winter did not affect the crop, so the pit full of traders freaks out! There’s not going to be price pressure, so they’re all holding OJ contracts that are seriously overpriced. A mad selling frenzy ensues, driving the price way down.
Again at a point timed for maximum effect, Lewis and Billy-Ray Valentine announce that they’ll “buy em” — they buy back the OJ contracts at a much lower price than they sold them for earlier, netting them a huge profit. They also refuse to sell to the Duke’s trader, freezing him out.
The Duke’s get a margin call and go bust and our heroes make a lot of scratch. Of course, in real life, trading curbs and circuit breakers would prevent either side of this play, but it is educational and funny to watch.
Duration : 0:7:11
25 Responses to “Trading Places Final Exchange Scene & Explanation”
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March 31st, 2010 at 12:29 pm
Thanks for …
Thanks for explaining the process. Just couldn’t understand HOW they made any money all the times I watched it. Thought I must’ve missed something, a scene or lines which explained it.
Seems one COULD make ‘a lot of scratch’ BUT could also lose everything if the deal went south.
March 31st, 2010 at 12:29 pm
i work there and …
i work there and although it seems crazy, which it is, its also very organized and efficient. Everyone is shouting out bids or offers, and try to find someone else that will take the other side of the trade. then a trade ticket is written out with the transaction and who it was with, writing down their badge id. which is then time stamped and entered into the computer. but everything is becoming electronic which is bring this to an end.
March 31st, 2010 at 12:29 pm
They filmed this …
They filmed this scene on the weekend, most of the people there are real traders. It was a blast!
March 31st, 2010 at 12:29 pm
its all pre …
its all pre scripted bullshit… stocks and shares are fixed…. think about it man..
March 31st, 2010 at 12:29 pm
Well, well Randolph …
Well, well Randolph and Mortimer are SO interested in what happens to rich people if they become poor and homeless. Yet when Louis and Valentine very kindly give the old men the perfect opportunity to learn that for themselves they forget to say thank you…. they don’t even seem excited about the wonderful research opportunity they have been given. theres just no pleasing some people.
March 31st, 2010 at 12:29 pm
O.K., I’ve seen …
O.K., I’ve seen this part about 100 times, but I still don’t *how* the anyone gets anything done in all that craziness. I mean, how do they keep track of what they’re buying & selling when everyone is shouting over everyone else? WTF?
March 31st, 2010 at 12:29 pm
didnt even notice …
didnt even notice til now.
Thank you sir
March 31st, 2010 at 12:29 pm
lol the guys from …
lol the guys from coming to america
March 31st, 2010 at 12:29 pm
meri nu yeear!
meri nu yeear!
March 31st, 2010 at 12:29 pm
Too bad the Dukes …
Too bad the Dukes couldn’t hang on until 2010:FCOJ futures are up 17 per cent this week.The price of screwdrivers will go way up.
March 31st, 2010 at 12:29 pm
HAPPY NEW YEAR!
HAPPY NEW YEAR!
March 31st, 2010 at 12:29 pm
lol are you talking …
lol are you talking about Coming to America?
“RANDOLPH! WE’RE BACK!”
March 31st, 2010 at 12:29 pm
Happy new year!!
Happy new year!!
March 31st, 2010 at 12:29 pm
We’re back! WE’RE …
We’re back! WE’RE back!!
March 31st, 2010 at 12:29 pm
I hope Randolph …
I hope Randolph saved that dollar he won, he’s sure gonna NEED it! Don’t the two old men look like complete idiots when they get their comeuppance?
March 31st, 2010 at 12:29 pm
And now that I …
And now that I think about it, it’s conceavable that they bought more than they sold, leaving them with potentially valuable futures for a rock bottom price
March 31st, 2010 at 12:29 pm
Right- this whole …
Right- this whole thing was to maniuplate the price.
The Dukes drove it up by having their man buy as much as possible, getting everyone else to buy. Our heros drove it down by selling imaginary contracts they buying them back when everyone realised how overpriced they were and started selling to cut their losses.
Since they bought back all they sold they didnt have to deliver their imaginary oranges but since the transactions still took place they made a huge profit.
March 31st, 2010 at 12:29 pm
Kind off odd to …
Kind off odd to think none of that is there anymore, assuming it was filmed on location.
March 31st, 2010 at 12:29 pm
Am I right in …
Am I right in thinking that they sold shares that they did not actually own for a high price, then bought them back for a low price, thus making a huge profit, but in the end they have not actually sold or bought any shares at all?
March 31st, 2010 at 12:29 pm
One powerful word …
One powerful word was mentioned.
March 31st, 2010 at 12:29 pm
Powerful Movie with …
Powerful Movie with a message!
March 31st, 2010 at 12:29 pm
that’s right…it’s …
that’s right…it’s like borrowing money to go to vegas.
March 31st, 2010 at 12:29 pm
language !!!!!!!!
language !!!!!!!!
March 31st, 2010 at 12:29 pm
classic comedy… …
classic comedy…funny as fuck!
March 31st, 2010 at 12:29 pm
How this didn’t get …
How this didn’t get nominated for best original screenplay stumps me.