Various uses of E MICRO futures!

What if a trader has two futures account with two different brokerage firms. Can he short a futures contract in one account and go long on the same month contract in the other futures account and be legal doing it?
 
Overnight said:
But the CME has nothing to do with IRS tax law?

Robert why does my broker show this on my statement?

Here were two open positions, offset.

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16K margin required for the maintenance, whatever...

Then why do they do this?

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That was from the statement that day.

What is the point of it, if it means nothing to US traders?

I do not understand.
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Yes you do. Matt took care of this.
 
pinabetal said:
What if a trader has two futures account with two different brokerage firms. Can he short a futures contract in one account and go long on the same month contract in the other futures account and be legal doing it?
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NO! This is against exchange rules. This makes it difficult for them to monitor open interest.
 
pinabetal said:
What if a trader has two futures account with two different brokerage firms. Can he short a futures contract in one account and go long on the same month contract in the other futures account and be legal doing it?
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The first question, why even do that? It's amateur to try to go long and short and try to time the market that way.
If you have different strategies that require different time frames, open two separate accounts.

Whether it is legal or not to make "wash" trades, it is not. When you open a position it clearly states that your intention is to be in a position. Long and short (intentionally) is not a position.
 
MattZ said:
The first question, why even do that? It's amateur to try to go long and short and try to time the market that way.
If you have different strategies that require different time frames, open two separate accounts.

Whether it is legal or not to make "wash" trades, it is not. When you open a position it clearly states that your intention is to be in a position. Long and short (intentionally) is not a position.
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I 100% agree. I can only think of two valid reasons to buy in one account and sell in another.

  1. One platform loses access to routing and you want to close.
  2. You are in the midst of an account transfer and want to close.

Both are still not legal, but I at least I understand.
 
Robert Morse said:
  1. One platform loses access to routing and you want to close.
  2. You are in the midst of an account transfer and want to close.
Both are still not legal, but I at least I understand.
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If you are closing a position in both cases, what is wrong with it?
It's 100% fine because its risk management and you did not open and close at the same time.
 
MattZ said:
f you are closing a position in both cases, what is wrong with it?
It's 100% fine because its risk management and you did not open and close at the same time.
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Because at one FCM you are long and another you are short. Until you offset them, it is a violation of CME rules.
 
Robert Morse said:
Because at one FCM you are long and another you are short. Until you offset them, it is a violation of CME rules.
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I think it boils down to your initial intention as well. Any reasonable person would understand that if you did not have the ability to close a position with a current FCM, you need to manage risk.
 
If it's illegal it's illegal but don't get fixated on the idea of hedge. A trader could be long on a swing trade with the minor corrections as inconsequential. That trader could also in a different account be day trading legs back and forth. They are not hedges but SEPARATE operations with different goals.
 
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MattZ said:
The first question, why even do that? It's amateur to try to go long and short and try to time the market that way.
If you have different strategies that require different time frames, open two separate accounts.

Whether it is legal or not to make "wash" trades, it is not. When you open a position it clearly states that your intention is to be in a position. Long and short (intentionally) is not a position.
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I am talking about two accounts. Now it is confusing. Are you seemingly saying if a trader was long in one account the NQ with THE INTENTION of scalping 2 points that he could ALSO BE SHORT the very same contract month NQ in another account IF his intention is to swing trade for 20 points in the second account? And this would be legal? If so, then it is a matter of intention ONLY? Or I am I misunderstanding what you are saying?
 
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