sell order before buy order

Discussion in 'Trading' started by trader123x, Jun 6, 2019.

  1. in the momenet when shares falls may I do first sell order before buy order , but after buy shares in the same trading day, I have done it with IB demo trader only, get account in minus after sell order
     
    Last edited: Jun 6, 2019
  2. zdreg

    zdreg

    No. Iti s a violation of short selling regulations.
     
    nooby_mcnoob and trader123x like this.
  3. Care to clarify? As retail client where your broker does the locate and borrow it is completely irrelevant from a regulatory standpoint whether you first short and then buy back or buy and long sell. And I think the OP, if I understand correctly was asking a much simpler noob-like question.

     
    tommcginnis likes this.
  4. dozu888

    dozu888

    never sell america short.
     
    ps0013 likes this.
  5. bone

    bone

    This is reason #563 why you trade futures.
     
    Handle123 likes this.
  6. zdreg

    zdreg

    If you sell without being long the stock you are creating a short sale The OP asked if he can sell and then buy back later. The answer is no.
    (Every short sale has to be marked as a short sale and has to have a locate.)
     
  7. ... Which is irrevant to retail traders because their brokers perform the locates and borrows. That is exactly what I stated in my post. So, yes a retail trader can sell a stock he does not own and buy it back later as long as the broker offers inventory. It's called stock loan and IB for example has a column where they even display available shares that can be shorted without RFQ.

     
    tommcginnis likes this.
  8. zdreg

    zdreg

    you are correct as far as Interactive Brokers which is highly automated. It is not general industrial practice which usually has 3 categories buy, sell and short.
     
  9. Same with IB, buy sell, short. Name us one single retail online trading platform that allows for short sells but requires the retail trader to locate borrows? Not one to my knowledge exists. They all automate and simplify the process for retail traders. Well almost all do, perhaps you find one or two antiquated retail brokers where that is not the case but certainly none of the large ones.

    Unless you can contradict that statement with facts or can admit that I am on point no need to reply. I am growing tired to argue with people on this site who self declare to be traders but never can admit to be wrong.


     
  10. zdreg

    zdreg

    I never said that. your statement shows that you reading something I never wrote. The broker makes the locate. it is a basic function of the broker.

    What am I saying to you is that most brokers have 3 clicks to enter an order-buy, sell and short. Ib has only two if I recall. buy and sell. With most brokers you have affirm that you want to sell short by hitting the short button. then the broker does the locate. If you hit the sell button and you are not long the stock the order will be rejected. IB assumes when you hit the sell button and are not long the stock that you wish to go short.
     
    Last edited: Jun 6, 2019
    #10     Jun 6, 2019