Holding Long & Short Positions Simultaneously?

Discussion in 'Retail Brokers' started by joespo, Jun 26, 2012.

  1. joespo


    Does anyone know of a broker in which I can hold a long and short position at the same time?
    My current broker automatically sells existing positions before going short, and vice-versa (even though this would double their commissions!).
    They told me to open another account with them so that I could.........:confused:


    Buy 100 ABC

    Short 100 ABC

    Sell 100 ABC (Close 1/1 Long Position)
    Buy to Cover 100 ABC (Close 1/11 Short Position)
  2. 1245


    Use sub accounts under the master, or multiple accounts. Why would you want to create financing charges by do this?
  3. Can be accomplished using ButtonTrader as front end with IB
  4. Be careful of wash sale rules. Boxes positions are not popular anymore.
  5. Daal


    Can you explain more how to do this procedure?
  6. Button trader manages each leg individually allowing simultaneous short and long positions in the same instrument. It is a function of the program.

    Each leg has its own "strategy" [entry/stop/target]

    You can also combine legs or split positions for scaling out etc...

    It is an excellent front end for IB, designed for scalping, works well for intraday, not really necessary for swing...

    I like its organization, as I can hold swing positions and intra at the same time regardless of direction [S/L] in multiple instruments each with their own customizable strategy window or tabbed in same window [grids].


    Various tutorials which better explain the features

    Has a bit of a learning curve, but once past that it is very intuitive, versatile, reliable and efficient...

    The program itself is rock solid, never a crash with excellent and timely customer support.

    Only Caveat being that it only supports IB... which is fine by me, as IB is a solid broker...

    Disclaimer: Before my post gets flamed... I am not affiliated with BT, just a very satisfied long time customer and quite content with my IB/BT/Tradelog combination for my primary brokerage.

    {Regarding Wash Sale rules - having made my MTM election with the IRS, I maintain a separate brokerage for my long term investments - simple solution}
  7. Daal


    How does that work at the broker level?The short would be offset by the long and thus closing out the short. Is BT just providing an illusion that have 2 positions and separating the PLs?
  8. IB makes it easy to have 2 accounts. Otherwise, in one account just apply 2 contracts (or share blocks) to your desired net position.
  9. It doesn't close out the position, they are held separately unless you merge the two legs together [drag and drop - which is explained in the user/reference guides]

    But I prefer not to provide mis-information and suggest you email Hoi/Robert for further clarification on exactly how it is handled technically... you can update the thread with his explanation


    Note: When I first looked into BT, he was extremely patient and thorough with my barrage of questions, and trust me I had a lot of them.
  10. Updated information:

    Your question peaked my interest so I inquired on my own behalf.
    To follow BT's explanation/response to my inquiry:

    The feature in Button Trader allows you to take Long and Short Trades at the same time in the same instrument in the same Account, as it has its own administration per trade.

    This administration allows you to manage, for instance a Short of 5 Lots and at the same time a Long of 4 Lots in the same instrument.

    Each trade (we call it a Strategy) has its own Orders, physical present at the Broker/Exchange (for target and stops, so in this example two orders 5 lots short, and two orders 4 lots long). [edited qty's believe they were transposed]

    But for the position side (and this is a bit hard to understand) you will see in Button Trader 5 Shorts virtually and 4 Lots Long virtually (on the Broker level you are PHYSICALLY 1 lot Short).

    So for those traders who use a hedging way of trading, this is great. You can take a more or less long-time swing trade in a Long direction (and manage those orders) and when you see some nice short-term scalp in a short direction, you can manage that trade separately (although virtually, it’s an advantage to manage such a hedge).

    Be aware that some traders say they can do this as well with 2 separated accounts. But that is illegal !! The IRS sees this as illegal “white washing”, and your Broker will monitor it and prevent it (IB will do this). You might hide it if you use two different Brokers, but it’s still possible fraud.

    Hope it explains all
    #10     Jul 3, 2012