Final chart outcome
This chapter brings the position concepts together. The Apple chart shows a completed long position with four shares. Marker A is the $187 entry, marked by the green line. Marker B is the $170 exit, marked by the red line.
Use the same three steps whenever you calculate a completed position. First, choose the formula that matches the position direction:
Long result per share = exit price − entry price
Short result per share = entry price − exit price
Total result = result per share × quantity
Second, insert the entry and exit prices into the formula. A positive result is a profit, while a negative result is a loss. Third, multiply the result per share by the quantity.
The candles between A and B show how Apple’s price moved during the trade. For the calculation, use the prices marked at A and B: the $187 entry and the $170 exit.
The final exercise keeps the same prices and quantity but changes the direction to short. Choose the short formula and calculate the result again. This shows why the same price movement can produce opposite outcomes for long and short positions.
Did this long position produce a profit or a loss?
Choose one answer.