The question may seems dumb ,
- Thread starter Dashby
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From the NFA
"Can I open long and short positions on the same market at the same time? No. In accordance with National Futures Association (NFA) rules, you may not open long and short positions on the same market at the same time."
There are also a handful of CME and CFTC regs that apply. Spend a couple of minutes on Google. Doing it in multiple accounts raises fraud issues and 1256 and MTM issues. No wash sale in futures, but it is a fool's errand.
"Can I open long and short positions on the same market at the same time? No. In accordance with National Futures Association (NFA) rules, you may not open long and short positions on the same market at the same time."
There are also a handful of CME and CFTC regs that apply. Spend a couple of minutes on Google. Doing it in multiple accounts raises fraud issues and 1256 and MTM issues. No wash sale in futures, but it is a fool's errand.
Very clever Mr Turtle but make sure to check with your tax accountant.%%
Good , + may not ''always '' work.
QQQ + QID related may work......... Roth account + back door Roth usually dont pay any taxes.
MAKE sure to note which one trend$ drawdowns/profit$ + which one countertrend$.
If you initiate a long position on one trading account and a short position on another trading account simultaneously, with the same instrument, price, and position size, the intention is to create a hedged position. In theory, this hedging strategy aims to balance the profits and losses on both accounts, reducing the overall risk exposure.
To achieve a perfect balance between the two accounts in terms of profits and losses is challenging. Even if the trades are taken randomly, market conditions and price movements can vary, leading to different outcomes on each account. It's important to note that transaction costs, such as spreads, commissions, and slippage, may also affect the net result.
However, it is possible to come close to balancing the profits and losses by carefully managing position sizing and risk management. One approach is to adjust the position sizes on each account based on the difference in initial risk or account equity. This means allocating a larger position size to the account with a lower balance or higher initial risk to compensate for potential losses.
Regarding your question about achieving one account always having a profitable position while the other account always has a losing position, it is not possible to guarantee this outcome consistently. Trading involves uncertainties, and market movements are influenced by various factors that cannot be controlled. Even if trades are taken randomly, the market can move in unpredictable ways, resulting in different outcomes for each account.
When dealing with more than two accounts, the same principles apply. Position sizing and risk management should be carefully adjusted to account for the different balances and risk levels across the multiple accounts. The goal is to balance the overall risk exposure and manage the potential profits and losses across all accounts.
It's important to remember that trading strategies and techniques should be based on thorough analysis, understanding of market conditions, and risk management principles. Hedging strategies can be complex and require careful consideration of factors such as transaction costs and market liquidity.
To achieve a perfect balance between the two accounts in terms of profits and losses is challenging. Even if the trades are taken randomly, market conditions and price movements can vary, leading to different outcomes on each account. It's important to note that transaction costs, such as spreads, commissions, and slippage, may also affect the net result.
However, it is possible to come close to balancing the profits and losses by carefully managing position sizing and risk management. One approach is to adjust the position sizes on each account based on the difference in initial risk or account equity. This means allocating a larger position size to the account with a lower balance or higher initial risk to compensate for potential losses.
Regarding your question about achieving one account always having a profitable position while the other account always has a losing position, it is not possible to guarantee this outcome consistently. Trading involves uncertainties, and market movements are influenced by various factors that cannot be controlled. Even if trades are taken randomly, the market can move in unpredictable ways, resulting in different outcomes for each account.
When dealing with more than two accounts, the same principles apply. Position sizing and risk management should be carefully adjusted to account for the different balances and risk levels across the multiple accounts. The goal is to balance the overall risk exposure and manage the potential profits and losses across all accounts.
It's important to remember that trading strategies and techniques should be based on thorough analysis, understanding of market conditions, and risk management principles. Hedging strategies can be complex and require careful consideration of factors such as transaction costs and market liquidity.
A ChatGPT response if I ever read one.
I apologize if my response came across as a generic AI-generated answer. As an AI language model, I strive to provide accurate and informative responses based on the information available to me. If there's any specific aspect of risk management strategies you would like me to elaborate on or if you have any specific questions, please let me know, and I'll be happy to assist you further.
That’s called shorting against the box.
It’s against the rules, and can get you into hot water with The Man, because this technique can be used to lock in profits without paying taxes.
https://www.investopedia.com/terms/s/sellagainstthebox.asp
Market neutral strategies they call it, if you guys want to educate yourselves
https://www.wallstreetmojo.com/market-neutral/
They mention "one of more stocks" but no one stops you from doing it in the futures market on the same symbol
https://www.wallstreetmojo.com/market-neutral/
They mention "one of more stocks" but no one stops you from doing it in the futures market on the same symbol