Is it legal to hedge in another account?

Quote from cstfx:
Now, as to why you would want to do go long and short... [/B]
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Well, part of the reason is when two different strategies conflict with each other. The other reason is to see if it would work because you never know. At the same time I kind of wanted to know if my trades would be like a contrarian indicator for the banks I know it sounds paranoid but it was sheer curiosity
 
OP:

Are you referring to a spread placed over two accounts where your loses are stopped tight and your profits wide in opposite directions to take advantage of an unexpected big move either way?
 
Quote from Sodajerk:

OP:

Are you referring to a spread placed over two accounts where your loses are stopped tight and your profits wide in opposite directions to take advantage of an unexpected big move either way?
More...

There are several reasons why I could do a trade in the opposite direction. Maybe I should repeat this is currently in two demo accounts, I haven't tried this live yet. One is for two seperate strategies where I'd be entering at different times anyway. The other is when I think the price may start heading the other direction.
 
If you do it simultaneously it's clearly meaningless.

The most profitable strategies require multiple accounts, though.

The ultimate reason is that can avoid stops...


Quote from ForexForex:

You have probably misunderstood the OP. The following trade is not illegal.

EUR/USD Buy
EUR/USD Sell

You can't do it in one account, but with a few clicks of the mouse you can get a 2nd account number under your master account. A trade like that is COMPLETELY USELESS though.
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Quote from Buy1Sell2:

Wrong. The trade is highly illegal but more to the point, it makes no sense. Thank you for your time. --Ishmael:)
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From chat with Oanda Rep: 9/4/09 10:30am

>Please wait for an agent to respond.
>Chat InformationYou are now chatting with 'OANDA'
OANDA: Thank you for choosing OANDA. How may I help you?
James: quick question concerning the new NFA rules: since a sub-accounts are margined separately from each other, is a trader able to go long one pair in one account and short the same pair in the separate sub-account? I know this brings up the issue of hedging and such, but based upon the NFA guidelines, this would appear to be possible with the Oanda system. Is this correct?
OANDA: You may place opposite trades within sub-accounts when using our platform.
James: So this would not violate the new NFA regs concerning anti-hedging, right?
OANDA: No it does not.
James: OK Thank you.
OANDA: You're welcome.
OANDA: Anything else I can assist you with?
James: That's it.
OANDA: Thank you for visiting. Please contact us at anytime.

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Please, get your facts straight first. Think this is bullshit? Open a chat window yourselves and ask. Like I said earlier, if you doubt what can be done, ASK A BROKER. See what they allow and don't allow.

BTW, never said I agreed with this trading tactic - if you want to hedge, it is better to hedge futures with spot then to hedge a spot pair against itself.
 
This is one of the worst discussions ever.

You can't be long and short the same instrument at the same time, you just have no position.

If you set-up two different accounts to do this, you are just generating commissions with no chance of a gain for yourself.

5yr
 
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