Long position quantity
Quantity is the number of shares a trader buys. In this example, the trader buys AMD shares for $100 each at marker A. The trader later sells them for $110 each at marker B. The green line marks the entry price, and the red line marks the exit price.
The price increased by $10 between the entry and exit. This creates a $10 profit for each share. If the trader bought two shares, both shares gained $10. The total profit is therefore $20.
Total result = (exit price − entry price) × quantity
($110 − $100) × 2 = $20 profit
Changing the quantity does not change the entry, exit, or $10 result per share. It only changes the total result. With ten shares, the same trade produces a $100 profit. First subtract the entry from the exit. Then multiply that result by the quantity.
Quantity also increases a loss. Suppose a trader buys ten shares at $100 and sells them at $95. The loss is $5 per share and $50 in total. Quantity increases the size of the result, whether the trade ends in profit or loss.
Which calculation gives the total result for two shares bought at $100 and sold at $110?
Choose one answer.