Thank you. But rather than a wash sale one use is simply to enter both sides at an important price level and then exit one position based on the following price movement.
It's mainly used to avoid missing a strong move away from or through such price levels after which there is no reaction on which to enter.
This came up last night in a discussion about trading tactics when a non-native English speaker asked me what you call it in English. I only trade on reactions so I don't know, but as I remember he places a stop loss order for each position which often eliminates missing an entry due to the time that would be needed to place a new order in the direction of the breakout. I can see often getting whipsawed doing this, but he claims it's very favorable on balance.
The commission is very small, and the margin is the same as it would be for a one sided position.
