Assuming I have placed a limit buy order, after 10 minutes the buy order is still pending, can I place another limit sell order of the same stock with a limit price that is 50bps away from the limit buy order without violating the cross trade rule? The spread of the stock is less than 20bps.
If your account is not approved to short stocks then the order will likely get rejected saying the order could cause an oversold position. Many platforms will allow you to place a buy order with a target price included. That won’t get rejected as the sell is contingent upon the buy order being filled first.
There is no rule preventing you from entering a buy and sell short order at the same time as long as the prices don't cross and the Sell short order does not require a locate.