Trading both sides of the market

B

bolter

I'm trying to find a thread that was floating around some time ago. The premise was trading both sides of the market concurrently using two accounts. Long in one account and short in the other.

I've searched high and low for it without success, and I can't remember who started it.

Thanks in advance for your help.

bolter
 
Quote from bolter:

I'm trying to find a thread that was floating around some time ago. The premise was trading both sides of the market concurrently using two accounts. Long in one account and short in the other.

I've searched high and low for it without success, and I can't remember who started it.

Thanks in advance for your help.

bolter
More...

Why two accounts?

The only purpose I can see in doing this would be to avoid taxes for some time such as shorting against the box to lock in gains. Wouldn't trading both sides result in a net neutral position? Commission would also be a factor...

If you were biased on one side, why not just initiate a small position? Wouldn't it be better to hedge with derivatives?

Maybe I'm not seeing something here :)
 
tireq,

The thread got bogged down on this very issue. Most of the posters failed to understand the subtleties of running a short book in one account and long in the other. I don't wish to rehash this issue in this thread. Let's find the original thread and then you can decide for yourself.

Thanks for your interest.

bolter
 
Quote from bolter:

I'm trying to find a thread that was floating around some time ago. The premise was trading both sides of the market concurrently using two accounts. Long in one account and short in the other.

I've searched high and low for it without success, and I can't remember who started it.

Thanks in advance for your help.

bolter
More...

I think this is Bright trading strategy with his opening market only orders. He puts in orders to buy and short prior to market opening and then get's filled on either side and rakes in the dough. Or loses the dough. Not sure if he's winning or not. But he uses one account. He said he's allowed to do it. Don't know.
 
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