Boxing a stock

B

Babak

I was wondering if it is legal to box a stock (go long and short). There are many reasons for wanting to do this, one of them being shorting on a down tick. Do brokers allow this?
 
this is totally illegal. even if you and another person conspire to do it in two separate accounts. check out NASD's website - they have a specific pdf on it.
 
I really need some clarification on this box rule. I currently own some QQQ's in one account that I'm looking to hold as a longer term investment but I also trade the Q's daily long and short in my daytrading account. Am I doing something illegal? In theory every time I go short in my daytrading account, I'm boxed. Does that mean you can never trade a stock you have in an investment portfolio? I never even thought about this before,, I've gone short many times for intraday scalps on stocks I have investments in.
 
creating a hedge box is legal on the NYSE.. im not sure about the AMEX.. it is not allowed at all on the Nazdaq.. i dont think it is a problem to hedge on the Q's because there is no uptick rule to violate..

-qwik
 
The main reason for boxing is hedging a position or shorting on a downtick, both can be done with Single Stock futures in late December.

Shorting on a downtick, currently only allowed for Market Makers, will be removed for some of the most liquid stocks on Dec. 21. By removing the uptick rule, boxing will be permitted for those stocks.

Fohat
 
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