Long in one account and short in another, same stock, legal?
- Thread starter Daal
- Start date
http://www.elitetrader.com/vb/showt...5&highlight=long short same legal stock&pagen
it use to be done to circumvent the uptick rule. .
it use to be done to circumvent the uptick rule. .
Yes... the "good old days".
Many years ago...
I would maintain "short against the box" positions...
For hard to borrow stocks.
Instead of closing out a short...
Where I might not be able to borrow the stock again...
I would just buy an equivalent long position...
Then sell the long = shorting the stock.
It can also be used to "disguise" market manipulation...
BUT...
Any ** intent ** to manipulate the market is illegal...
It doesn't matter if you know or succeed or not.
I got your PM, but am not sure what you want me to respond to. It is illegal to short in one account and be long in another account. And, if you did, you're basically flat and still have to mark the next sale as a short sale (because you're flat).
No more uptick rule makes it easier, but you still have to mark short since the Clearing Firm has to borrow the stock, and yes, some stocks are still hard to borrow - has nothing to do with the uptick rule.
Don