Are you serious?

[Robert Morse]

I have commented in a number of threads about this. Long/short the same Futures is the same as flat except double the commissions, double the margin and the CME has rules against it as it does not allow them to track open contracts.

for one thing, I can open long and short on the same instrument at the same time, provided I have a risk system and the market indeed swings.

 

[mervyn]

I have commented in a number of threads about this. Long/short the same Futures is the same as flat except double the commissions, double the margin and the CME has rules against it as it does not allow them to track open contracts.

that’s a reason why one needs two brokers.

 

[Overnight]

that’s a reason why one needs two brokers.

That is specifically disallowed. The chances of them catching small-fry like us is practically nil, but it is what it is nonetheless.

 

[Robert Morse]

Ok, my last comment, then do what you want. With futures, you can go long or short at any time. No locates or plus ticks required. It make NO SENSE to not close the position when you want to be flat. You are using twice the capital and being charged twice the fees.

that’s a reason why one needs two brokers.

 

[Bad_Badness]

They will also "pre" assess risk your account so that:
1) if you violate a preset loss level position is auto liquidated.
2) Orders skip this check so they are slightly (msec) faster.

It is leverage for those who are experienced. Trading one contract, and e.g. a 50% loss threshold on the account, and only $600 in the account, would require a trade to have an unrealized 24 tick loss, or 6 points before the threshold is reached. So the account would be liquidated, and you are left with probably about $200 after: Loss from trade, commissions, spread, and, don't forget the fine print, a fee for auto liquidation.

They are not going to allow you to owe them money on a bad trade.

 

[maxinger]

The lower the margin, the better it is for us.

Good for newbies.
They just need a small amount of $$$ in the trading account.
Also, it gives them the opportunity to trade live earlier.

Good for oldies too.
They just need a small amount of $$$ in the trading account.

 

[BMK]

I have commented in a number of threads about this. Long/short the same Futures is the same as flat except double the commissions, double the margin and the CME has rules against it as it does not allow them to track open contracts.

What about long and short stock at the same time in two different accounts?

Is there any context in which that would be rational?

Is it prohibited?

Long in your IRA, short in a taxable account, maybe?

Back in the 20th century when people had physical stock certificates, they would go short against the box. I wonder how many people on here know what that expression means. Wasn't it some sort of a tax strategy that became useless when Congress changed the law?

Obviously, going long and short stock at the same time could cause wash sales...

 

[mervyn]

I have commented in a number of threads about this. Long/short the same Futures is the same as flat except double the commissions, double the margin and the CME has rules against it as it does not allow them to track open contracts.

my last word too, same as long 1 es and short 10 mes, margin aside. You will not get caught by the exchange nor the taxman.

 

[alistera]

for one thing, I can open long and short on the same instrument at the same time, provided I have a risk system and the market indeed swings.

Impressive a broker doesn't understand the value of long/short same instrument, but so few make any profits it's not really a surprise.

Little trick for newbies, open a smallest unit long position and smallest unit short position on same instrument, leave it a few hours before you close one.

 

[CannonTrading_Ilan]

Just browsing futures brokers and found:


“We currently offer $550 day trading margins for E-mini S&P 500 (ES)”

Is this true?

My futures broker gets $12,320.00/contract for ES margin.

$550 day trading margins? Can someone please comment on this?

While I personally consider day trading margins for the ES and other E-mini indexes at levels around this amount are quite low, we do offer day trading margins at similar levels for our clients. If you’re a day trader and your account is flat / holding no open positions going into the close of trading and if the clearing house or the broker you’re with supports these lower day trading margins with a good handling of their accounts’ risks and margins as well as employing an effective Auto-liquidation policy – among any of the platforms they offer – then lower day trading margins can be a good thing. It is up to the Trader to understand how low day trading margins can impact the risks to their account and to utilize them with care and caution.