The context is like this: two different brokerage accounts, acc #1 difficult to operate, acc #2 (IB) very flexible I am holding 200 SPY in acc #1 which I would like to close sometimes in the future or even today. I would like to use the capital of the 200 SPY in acc #1 for trading in acc #2 and I am thinking of taking a short 200 SPY position in acc #2. I have enough margin in acc #2 and I understand that the dividend would be charged quarterly on acc #2. Looking for some feedback on this. Any reasons I should not do it? Any additional cost I don't see? TIA.
Just to clarify my initial post. I also have other securities in acc #1 which I cannot transfer out or liquidate at a reasonable cost for at least another 10 years. If I would move out the SPYs this would dramatically increase the maintenance fees on the account.
You would have to pay the borrowing fee on the short position in acc #2. Did you take those costs into account?