Questions / Quant trading, Markets & quotes
Decompose a round trip
You buy 200 shares at 49.98 and later sell the same shares at 50.03. There are no fees. What is total realized P&L?
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Answer: 10 currency units
- The round trip buys and sells the same 200 shares, so ending inventory is zero.
- Profit per share is 50.03 − 49.98 = 0.05.
- Total realized profit is 200 × 0.05 = 10 currency units.
Interview shortcut. Round trip: size × price difference = 200 × 0.05.
Takeaway. Separate revenue, per-unit edge, and total position profit.
In the app this has a follow-up where one thing about the setup changes. Try the follow-up.