Broker says Illegal to long 1es shot 1es in different account same time

Discussion in 'Strategy Development' started by ksonsinc, Jul 12, 2006.

  1. What is it Illegal to shot 1es and same time go long 1es in a different account
    Is there some kind of advantage we have when we do that
    Accourding to my stradgey Technique i think we have a edge and trading 1 ES long and 1 es shot we can average and find a right entry and exit
    What do you,ll think
     
  2. If you are short 1 contract in one account and long 1 contract in a different account your net position is 0, why would you bother setting up two accounts to do this? It doesn't make any sense. Just do it in one account.
     
  3. how can u go shot and long in 1 account
    using different expr dates
    BUT IS IT TRUE IT IS ILLEGAL to do it
     
  4. I don't think it is.....ask them to "cite their source" and verify it for yourself.
     
  5. tomhaden

    tomhaden

    I can think of several strategies that can work by being both long/short at the same price and then closing the wrong side of the breakout and letting the other position ride.

    But is it really illegal? I have read this in the past but never got a straight answer.
     
  6. It is totally legal but is it moral?
     
  7. If you are trading 2 different strategies, say a trend following and a counter trend strategy, it is very likely that they will be on opposite sides of the market. Whether you do it in 1 or 2 accounts has no effect on the results though.
     
  8. Well it all depend in how you trade
    like today i am long 1269 ( 2 contract on es and shot 1 contract on Ym 11095 based on the price action
    and depending on what happens in can breakeven even or make $200 to $300 a day which is not bad with very little risk.
    less draw down , can scalp also to take advantage of the situtation.
    now i am planing to try a new stradgey on es long es shot was just wondering since brokr and many other pll told me it is illegal and even if a person make 6 figures he can be invistagated
    or an inquire can start
     
  9. Surdo

    Surdo

    I will bake you a chocolate cake with a file when you get caught doing such terrible activities.
     
  10. zdreg

    zdreg

    is this an insider's joke or what point are you trying to make a point?
     
    #10     Jul 12, 2006