Lets say you think the stock ABC is going up 5% if market stays put, but you are confused cause its the summer markets at the market direction but you are sure the stock will go up. You buy $50,000 worth of ABC with a stop You short 1 contract worth of YM futures. YM futures will be closed once ABC is sold if ABC is stopped out, YM position will be closed. What kind of problem can exist in this type of trading? Whats your thoughts on this. I know this is a simple hedge, just seeing if anybody else uses method to trade with relatively lower risk.