You go short oil 10 futures contracts on NYMEX when the futures price of oil is $79 a barrel and close out your position three days later at a futures price of $83 a barrel. One futures contract is for 1,000 barrels. Ignoring interest on the margin account, the futures trading has resulted in a

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When you go short, you profit if the price decreases. Here, the price increased from $79 to $83, a $4 increase per barrel. With 10 contracts of 1,000 barrels each, the loss is 10 * 1,000 * $4 = $40,000.

You Go Short Oil 10 Futures Contracts on NYMEX When