Long/Short Orders

VicBee · Mar 2, 2023

M.W. said:
The net effect is 100% identical to simultaneous long and short positions. Which part of that is unclear to you?

I'd have to do a simulation to confirm that. I don't short so the calculation gymnastics isn't on my radar.

M.W. · Mar 3, 2023

No math involved...simple logic.

VicBee said:
I'd have to do a simulation to confirm that. I don't short so the calculation gymnastics isn't on my radar.

schizo · Mar 3, 2023

VicBee said:
At the risk of adding to the confusion, I think what OP wants to do (I've asked that question a while back) is to buy long but also short that position from time to time. For example, buy XYZ at 1 sell at 5. If at 4 the price looks to reverse, short "a new group of shares" with a buy at 3, while leaving the original long alone. Does that make sense?

Yeah, I see what's going on under the hood. Basically, he wants to HEDGE his long. I often do something similar with ES and NQ. I would go long ES and when I make enough, instead of selling outright, I would short NQ.

But why would you wanna do that with the same instrument? The two gets cancelled out (eg. long and short simultaneously) and all you're doing is paying extra commissions for no obvious benefit.

Temujin79 · Mar 3, 2023

schizo said:
Yeah, I see what's going on under the hood. Basically, he wants to HEDGE his long. I often do something similar with ES and NQ. I would go long ES and when I make enough, instead of selling outright, I would short NQ.

But why would you wanna do that with the same instrument? The two gets cancelled out (eg. long and short simultaneously) and all you're doing is paying extra commissions for no obvious benefit.

PM me and I'll tell you

M.W. · Mar 3, 2023

STFU, plenty individuals helped you yet you can't inconvenience yourself to post a public response? And don't tell us it's a secret profitable approach to trading. It's not. It's pure stupidity and lack of understanding the basics of netting positions.

Temujin79 said:
PM me and I'll tell you

schizo · Mar 3, 2023

Temujin79 said:
PM me and I'll tell you

Thanks but there's really no need since you won't find any brokers that will allow you to hold both long and short positions at the same time.

Even CFDs bar holding both long and short simultaneously.

However, from what I've found on the web, this is possible on Bitcoin exchanges, such as Binance.