Trading with a forced 30-day hold period

Discussion in 'Professional Trading' started by lolatency, Mar 8, 2009.

  1. I'm required to hold positions for 30-days minimum. Anyone else trading with this kind of restriction?

    The way I've been managing is to try and become market-neutral after my pre-set loss amount gets triggered. With non-leveraged ETFs, I just take the inverse position with margin. With stocks, I synthesize a portfolio with a negative beta of what my current portfolio is. The problem here is that my capital invested * 2 gets locked up for 30 days. If it's on margin, then I'm paying the margin interest rates. If another opportunity rolls around, I can't take advantage of it until the 30 day period is over.

    I could also buy options, but being an inexperienced options trader, I am somewhat hesitant. What's the correct way to do this, and can someone maybe give me a simple example?
  2. Surdo


    Open an account under your wife's maiden name or brother-in-law... and don't get caught!
  3. I thought about this, but I'm too much of a do-gooder to break the law. I just can't do it. It upsets me that the government and securities industry is this restrictive and doesn't actually compensate me for loss of income from this, but it's the game I signed up for and I knew the terms up front.

    I fantasize about doing crazy stuff like that, but I just can't bring myself to do it. I'm too afraid of the consequences.
  4. Surdo


    I worked for a large IB and we had no holding period for index ETF's or futures, obviously you could not go in/out 10X a day.

    Otherwise I had a 20 cal. day holding period. Check if you can trade QQQQ or SPY intraday.

    My other suggestion is really not that big of a deal as long as you are know what!

    e s