Being both long and short the same security

Discussion in 'Trading' started by andrew black, Mar 3, 2019.

  1. 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.
     
    Nobert likes this.
  2. qlai

    qlai

    ???
     
  3. This makes no sense.

    Make acc #1 easy to operate or close it down and move the money to acc #2.
     
    GRULSTMRNN likes this.
  4. Buy1Sell2

    Buy1Sell2

    The ultimate hedge. er hehe
     
  5. Robert Morse

    Robert Morse Sponsor

    I can't think of one reason why you should. You get zero benefit from this.
     
  6. I know I have this option :D but I would like to avoid it, thank you.
     
  7. 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.
     
  8. wartrace

    wartrace

    There are cheaper ways to be flat. :banghead:
     
  9. You would have to pay the borrowing fee on the short position in acc #2. Did you take those costs into account?
     
  10. zdreg

    zdreg

    there is no borrowing fee for SPY which is easily borrowable.
     
    #10     Mar 4, 2019