Good Reasons to open 1 additional Futures account

[Ironplates]

i am wanting to open up an additional futures account or sub account. there will be no other owners or parties involved in this scheme. i have no intention to bait the IRS with wash sales.

it appears when i gave the reason that 1 was to go Long and the 2nd was to go Short it violates Rule 534 "Wash Trades"

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash trades or wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

what are other reasons i can give to get that additional account?

is it simple enough to state the reason:
i want one account to trade NQ and the another to trade OIL and accomplish this feat.

such a reason indicates bona fide market position for each.

 

[Overnight]

i am wanting to open up an additional futures account or sub account. there will be no other owners or parties involved in this scheme. i have no intention to bait the IRS with wash sales.

it appears when i gave the reason that 1 was to go Long and the 2nd was to go Short it violates Rule 534 "Wash Trades"

No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash trades or wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.

what are other reasons i can give to get that additional account?

is it simple enough to state the reason:
i want one account to trade NQ and the another to trade OIL and accomplish this feat.

such a reason indicates bona fide market position for each.

So you told the broker you wanted to do wash sales. Now you are going to send them a request with a different reason other than the one you intend? Don't you think the broker will catch onto that?

 

[ph1l]

what are other reasons i can give to get that additional account?

is it simple enough to state the reason:
i want one account to trade NQ and the another to trade OIL and accomplish this feat.

such a reason indicates bona fide market position for each.

To make it easier for you to violate the law (and pay double commissions and fees), you could open an additional account with a different broker.

 

[tiddlywinks]

hmmm...

1) short-term trading, 2) swing trading, 3) investments

1) index trading, 2) energy complex trading, 3) foods, meats, other 1256 contracts trading, 4) FOP only trading

Come on man. That's really your question?

 

[bone]

After the Man Financial and PFG Best debacles, I have advised clients to keep their futures accounts modest with the caveat that they could wire additional funds quickly.

There is no advantage to having multiple accounts for outright positions in each account or even for independent legs of a relative value trade - unless you're screwing someone.

 

[tiddlywinks]

After the Man Financial and PFG Best debacles, I have advised clients to keep their futures accounts modest

The same events also proved the importance of FCM diversification (when using multiple accounts), in addition to keeping things modest.

 

[Ironplates]

So you told the broker you wanted to do wash sales. Now you are going to send them a request with a different reason other than the one you intend? Don't you think the broker will catch onto that?

yep. they told me to come up with another reason

 

[Ironplates]

hmmm...

1) short-term trading, 2) swing trading, 3) investments

1) index trading, 2) energy complex trading, 3) foods, meats, other 1256 contracts trading, 4) FOP only trading

Come on man. That's really your question?

Just wanted to get some confirmation that i wasn't in my own "echo chamber". thanks for the look!

 

[Overnight]

yep. they told me to come up with another reason

Well, sure then. Just lie with any of the answers @tiddlywinks came up with, and yer golden!

 

[Ironplates]

To make it easier for you to violate the law (and pay double commissions and fees), you could open an additional account with a different broker.

thanks for the idea, but i like where im at. need the additional account for automated trading. trades are occasionally bumping into each other. having a moment of zero exposure...priceless.