trading in a farther out contract is an entirely different story. Regulations concern themselves with the long and short position in one and the same contract and that means for futures same symbol, same contract expiry date. Second brokerage to my knowledge is entirely legal and not discouraged. But brokers that are regulated in most developed jurisdictions are prohibited to maintain concurrent longs and shorts without offsetting one side first and in effect closing one position. No regulated broker in such jurisdictions can show a long and short position at the same time in the exact same asset in the same account. Of course can I easily buy asset1 for account1 in the same broker and sell asset1 in account2 of the same broker. But I cannot do so in the same account without affecting the original position in the same asset.
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Please tell me the term for......
- Thread starter learner2007
- Start date
Yeah. No broker will allow you to be long and short at the same time. I know that for sure. But my point is that it is not illegal to do that with two different brokers, and you can go the next contract out with the same broker. I've been told this by multiple brokers. But to be on the safe side, just email your broker with the question, and save the email. If you were to ever encounter a problem, you can always produce the email from said broker.
you may want to re-read the original question. The issue was never about different contracts. Nor was the discussion about different brokers. I think everyone is aware of what you just said. But we talked about same contract, same broker, same account.
Yeah. No broker will allow you to be long and short at the same time. I know that for sure. But my point is that it is not illegal to do that with two different brokers, and you can go the next contract out with the same broker. I've been told this by multiple brokers. But to be on the safe side, just email your broker with the question, and save the email. If you were to ever encounter a problem, you can always produce the email from said broker.
...which i already outlined and even went a step further in confirming you can do so with even the same broker but different accounts with the same broker. But you still don't get the point of this thread....anyway best of luck to you...
And if it is the same broker, same contract, same account then you cannot trade both sides of it. However, for the curious, there is a way to do it, as I said above
Would someone please tell me the term in English for holding both a long and short position at the same time in a futures contract. I realize this may not be allowed by some exchanges or brokers but is allowed where I am.
Thank you.
The term is illegal. When you place a trade your broker will identify you to the exchange in FIX TAG 50. Being long and short at two different firms will certainly cause your broker to get a vague email from the exchange asking lots of questions about your account. If you broker is smart they will know the exchange is trying to tell them something while telling them nothing. They will (and should) shut you down.