A Rapid Method of Calculating Profits Made or Losses Sustained in Privilege Trading on the Chicago Board of Trade

Report Introduction: The present method of determining the profits made or losses sustained over a period of time by a buyer or seller of privileges in grain futures on the Chicago Board of Trade is to calculate the profit or loss made on each bid or offer made good, and in the case of a buyer, deduct the amount paid over the period for privileges, or in the case of a seller add the sum received. The Federal tax paid on offers and on futures arising out of bids made good and commissions paid to another member on trades executed for him must also be allowed for. This is a laborious procedure and because of the amount of work involved traders seldom take the time to separate from their profits or losses resulting from trading in grain futures and privileges the part contributed by the latter. In order to aid traders, both members and nonmembers of grain exchanges, a better and simpler method employing the use of tables, charts and formulae has been devised which permits an easy and rapid method of arriving at the profits made or losses sustained in trading in daily privileges in wheat, corn, oats and rye futures. Because members who do their own trading on the exchange have no commissions to pay whereas nonmembers have this expense, two sets of tables and formulae have been compiled, one for the former and another for the latter.