I wanted to short a stock that I also had a long position and tradeking said I can not do.
This is bullsh_t because other brokers would make the trade.
Forum > Long vs short position
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Posted December 28, 2007 (08:17AM)
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Posted December 28, 2007 (11:57PM)
From what I've seen, this is a very protective brokerage. They probably deal with a lot of people who don't know what they're doing. They get a lot of people who want to do crazy stuff with options without understanding what they're exactly doing. They are a little over protective. Personally, I don't know why you would ever want to go long and short at the same time. Wouldn't you be better off to not do anything until you have a conviction about which way the market will be moving? this isn't the same as a put-call spread because the prices is just the stock price. |
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Posted December 30, 2007 (03:49PM)
actually no brokerage would make that trade for you, it is no possible unless you open more than 1 account. Because if you are long on a stock and you sell it short you are selling your sshares then the brokers, and if you are short and then buy long you are first buying to cover your short. The only time to do this is when you think a stock is going to move but notsure which way but are confident it will bounce the other way also you can get in and wait and capitalize both ways, it makes sense but it is not worth doing, hoever you shold look at interactive brokers, with them you can have as many accounts as you want and instantly shuffle money between them and you could long in one acct and short in another, But you should really look into options if you want to do things like that anyway
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Posted December 30, 2007 (03:54PM)
The only reason I see value in this "conflicting" trading practice is, the holder doesn't want to sell the stock now to avoid capital gain this year, but he feels that the stock may go lower, so he want to short it to protect his profit.....
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Posted December 31, 2007 (02:47AM)
Dear Dondi 58 Thank you for your post and you bring up a great topic for discussion. But before we get started, could you tell me a little bit about the particular scenario and goal you are trying to accomplish? Historically shorting against the box was done as a strategy by investors for tax reasons. However the advantage of locking in a gain, and not realizing a profit, are for the most part long gone. If you could take a second to explain what your goal would be with that strategy it would help us put a response together for you. Thanks! |
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Posted December 31, 2007 (04:51AM)
I IS AGAINST THE LAW SINCE 1997! It is called "Short Against the Box". Just google that and you will get information overload. I used the stategy to delay taxes but they stopped the practice. Even if you have separate account it is illeagal. Some say that it is an audit trigger.
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