Trading Futures with two accounts?

Discussion in 'Trading' started by c.chugani, Apr 25, 2008.

  1. Has anyone tried trading futures simultaneously using two different accounts with two different brokers?

    My point is: entering a long position on one account and entering a short position on the other account at the same price level - basically hedging your position (ie. delta neutral)

    Wouldnt it then be a matter of determining the exit point (based on technical analysis, or any other system) on both accounts to realize a profit?

    In this case the entry point at a certain price level isnt as critical, since you are basically covered with the other account (if the market happens to move against your initial position).

    Any thoughts?
  2. Surdo


    Wouldn't you save on commissions if you stayed flat?

    You could also do a calendar spread in the same account for almost the same net effect. Buy June and sell September. No need for 2 accounts.
  3. If I stay flat I am out of the market and I really do not know which direction the market wants to take me - so by the time I realise which way to pull the trigger, I am already chasing a move.

    By entering randomly with two opposite positions, I could care less where the market goes. What I make on one account, I lose on the other.

    I then cut the loser move (either fixed or trail stop) and let the winner run. Worse comes to worse, I end up exiting the loser and my winner reverses direction. The trail stop ensures I just come out at my entry price [on the winner account, since the loser account has already been stopped out for an amount I am willing to risk]

    Am I missing something here?
  4. Surdo


  5. H30


    I think I have heard of people doin this around here especially on days when there is big market news.
  6. what about the lack of liquidity and volume on the back months?

    And do the prices on both contracts (front and back month) move at the same speed? I have always thought the back month has lagged and is less volatile when it comes to price moves in the market.

    Thanx for helping out.
  7. Surdo


    What are you trading?
  8. paj


    Wouldn't the end result would be the same as if you'd waited and entered the position in one direction a little late?

    What you gained by being at the start of the move, you lose on the opposite trade.
  9. What if one doesn't know where the market is going?
    #10     Apr 25, 2008