Break even calculation

[Anton Chigurh]

If any one can help with this is as it's driving me nuts.

I want to calculate the break even point of 2 positions via a formula.

For example if I have a long position of 5@1261 and a short position of 3@1251.

What is the easiest way of calculating break even if the market keeps trending up?

Thanks

 

[tommcginnis]

"If a train leaves a station westbound at 45mph, and another....."
so, set them both in an equation = 0, and then solve.

More intuitively: put 'em into a ladder:

3*1251 in one column
price it up to 1261 (so, 10*300) in a second column (et cetera)

And then in a third column (5*1261)
and then in a fourth, price this difference (from 1261) also, up up up up.

When column two = column four, you're set.

( Man! That takes ya back, don't it?? )