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Turn those machines back on!!! (Original Post) vercetti2021 Nov 2020 OP
Hi V! SheltieLover Nov 2020 #1
Hi shel! vercetti2021 Nov 2020 #2
Hi hi SheltieLover Nov 2020 #5
Oh, Mortimer!!! Oh, Randolph!!! displacedtexan Nov 2020 #3
hahahahaha!! unblock Nov 2020 #4
I have that movie TlalocW Nov 2020 #6
I can kind of break it down vercetti2021 Nov 2020 #7
Basic short selling in action jmowreader Nov 2020 #9
Great Reference! ProfessorGAC Nov 2020 #8

TlalocW

(15,379 posts)
6. I have that movie
Wed Nov 4, 2020, 07:14 PM
Nov 2020

I've watched it time and time again. I've looked up explanations of the plot, and I still don't get exactly what Dan and Eddie did to the Duke brothers...

TlalocW

vercetti2021

(10,156 posts)
7. I can kind of break it down
Wed Nov 4, 2020, 07:21 PM
Nov 2020

So what they ended up doing was selling futures at 1.42 per. The Dukes had insider trading information. They were buying as much as possible causing the market to go up and others buyers followed causing it to go up.

What Louis did was sell it for a higher amount at April 1.42. Thus causing the Dukes to panic knowing they slipped them a fake report. The harvest wasn't affected and it caused the prices to drop. They bought back their agreements at 29 cents in April. They sold high and bought low. Thus making a huge profit.

jmowreader

(50,552 posts)
9. Basic short selling in action
Wed Nov 4, 2020, 09:15 PM
Nov 2020

First, they created a fake crop report that said weather was going to massively impact the Florida orange harvest, which would have caused shortages of frozen concentrated orange juice (FCOJ).

Next, they borrowed and sold a ton of FCOJ futures to the Dukes' trader before the Secretary of Agriculture issued the real crop report.

After the real report was released (which said the Florida orange harvest would be normal), they bought and returned, at a substantially lower price than they received when they sold, FCOJ futures...and the important part is, they somehow convinced everyone else in the room to not buy from the Dukes' trader.

At the close of trading, the Dukes were holding the bag for millions of dollars' worth of futures they couldn't afford.

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