opening up two accounts to trade bid and ask?

Discussion in 'Trading' started by noob_trad3r, Oct 14, 2010.

  1. Is this something that could work in some way? two different brokerage accounts, one where you sell the other to buy?
  2. What are you trying to do, really?

    So you keep buying with account A and keep selling/shorting with account B. Until you are out of buying power. Then what?
  3. Might be a way to get some leeway on the pdt rule.:D
  4. cause you don't have to worry about wash trades
  5. the quant on 60 minutes says he makes 4 million trades a day from a base of 4000 stocks and we have to worry about the wash rule. What a crooked country.
  6. Excuse me? PDT rules? Wash trades?

    Do they seem to be related with what the OP said:

    "opening up two accounts to trade bid and ask?"

    Buying on the bid and selling on the ask. You worry about PDT rules or a wash sale?
  7. that's not what he said.
  8. It's in the title. Specifically "bid" and "ask". That's why I got the impression that he wants to play market maker. I am waiting for his clarifications.
  9. thanks. didn't notice that.
  10. spindr0


    For equities, you don't need two accounts to do this. You can be the best bid and the best ask at the same time. But that gets you nowhere unless you get a fill on both sides.

    This can work if dumb money is buying at the ask and selling at the bid. It gets better with illiquid stocks (wider spread) but because of that illiquidity, the UL may jump around erratically.

    If you get a fill on one side and then the stock moves against you, you have a good fill but possibly an underwater position and then you're a bag holder :)
    #10     Oct 14, 2010