Being both long and short the same security

[andrew black]

The context is like this:

• two different brokerage accounts, acc #1 difficult to operate, acc #2 (IB) very flexible
• I am holding 200 SPY in acc #1 which I would like to close sometimes in the future or even today.

I would like to use the capital of the 200 SPY in acc #1 for trading in acc #2 and I am thinking of taking a short 200 SPY position in acc #2. I have enough margin in acc #2 and I understand that the dividend would be charged quarterly on acc #2.

Looking for some feedback on this. Any reasons I should not do it? Any additional cost I don't see?

TIA.

 

[qlai]

I would like to use the capital of the 200 SPY in acc #1 for trading in acc #2

???

 

[jeb9999]

This makes no sense.

Make acc #1 easy to operate or close it down and move the money to acc #2.

 

[Buy1Sell2]

The context is like this:

• two different brokerage accounts, acc #1 difficult to operate, acc #2 (IB) very flexible
• I am holding 200 SPY in acc #1 which I would like to close sometimes in the future or even today.

I would like to use the capital of the 200 SPY in acc #1 for trading in acc #2 and I am thinking of taking a short 200 SPY position in acc #2. I have enough margin in acc #2 and I understand that the dividend would be charged quarterly on acc #2.

Looking for some feedback on this. Any reasons I should not do it? Any additional cost I don't see?

TIA.

The ultimate hedge. er hehe

 

[Robert Morse]

Any reasons I should not do it?

I can't think of one reason why you should. You get zero benefit from this.

 

[andrew black]

This makes no sense.

Make acc #1 easy to operate or close it down and move the money to acc #2.

I know I have this option but I would like to avoid it, thank you.

 

[andrew black]

I can't think of one reason why you should. You get zero benefit from this.

Just to clarify my initial post. I also have other securities in acc #1 which I cannot transfer out or liquidate at a reasonable cost for at least another 10 years. If I would move out the SPYs this would dramatically increase the maintenance fees on the account.

 

[wartrace]

There are cheaper ways to be flat.

 

[HobbyTrading]

I would like to use the capital of the 200 SPY in acc #1 for trading in acc #2 and I am thinking of taking a short 200 SPY position in acc #2. I have enough margin in acc #2 and I understand that the dividend would be charged quarterly on acc #2.

You would have to pay the borrowing fee on the short position in acc #2. Did you take those costs into account?

 

[zdreg]

You would have to pay the borrowing fee on the short position in acc #2. Did you take those costs into account?

there is no borrowing fee for SPY which is easily borrowable.