Maybe a dumb question, but is it possible to set up multiple brokers with the same account at a clearing firm or some other method to achieve the following?
Lets say you have an open position at broker Z and for whatever reason you can't close a position at broker Z (generic routing issue to broker Z, issue with broker Z's system, static from nylon underwear, take your pick) and you therefore decide to execute the closing trade at broker Y. You want the net result to be no position, not 2 open (and opposite) positions.
I suppose for equities you could probably arrange a transfer of the long position to the other broker, who may then do some voodoo with the clearing firm to cancel each other out, but that'd probably cost more time and money than it's worth. Probably better to just wait for broker Z to become available again and close both positions simultaneously. Anyway this thread made me think about that as a possible use of a backup broker.
Lets say you have an open position at broker Z and for whatever reason you can't close a position at broker Z (generic routing issue to broker Z, issue with broker Z's system, static from nylon underwear, take your pick) and you therefore decide to execute the closing trade at broker Y. You want the net result to be no position, not 2 open (and opposite) positions.
I suppose for equities you could probably arrange a transfer of the long position to the other broker, who may then do some voodoo with the clearing firm to cancel each other out, but that'd probably cost more time and money than it's worth. Probably better to just wait for broker Z to become available again and close both positions simultaneously. Anyway this thread made me think about that as a possible use of a backup broker.
