can you go long and short at same time?

[newspreadbetter]

random question I know, say for example you had a long position open but wanted to trade on the dips/pull backs, can you have both open at the same time with the same SB firm?
I'm pretty sure last year when starting out a small 'short' I placed automatically closed down a long I had running longer term, does that sound right? And is there a way of having both open at the same time?

 

[tar]

random question I know, say for example you had a long position open but wanted to trade on the dips/pull backs, can you have both open at the same time with the same SB firm?
I'm pretty sure last year when starting out a small 'short' I placed automatically closed down a long I had running longer term, does that sound right? And is there a way of having both open at the same time?

It depends on the broker , FXCM will let you , i guess IG as well but you have to tick "force open" box ...

http://www.trade2win.com/boards/discretionary-trading/172660-can-you-long-short-same-time.html

 

[newspreadbetter]

Thanks Tar!

 

[timsk]

Thanks Tar!

Hi nsb,
In addition to tar's comments, you can trade long and short simultaneously on the MT4 platform - which most brokers offer these days. However, whether or not it's a good idea to do so is another matter entirely. There are good reasons for not doing this, so it's important that you're very clear as to why you want to do it. If you're not sure about the (few) pros and (many) cons - then this thread will explain all: Can you be long and short at same time?
Tim.

 

[Lord Flasheart]

Yep read that thread closely. If you are long and short in the same market you are flat and it serves no purpose,like like being red and black at the casino,eventually the spread will iron you out.

 

[DrSafari]

Hmm I've been testing this on a demo account recentlyl. But I only enter right before some major economical event like a FED speech. Last time it didn't work out because I waited too long and couldn't get my positions filled properly until it was too late. Have to test it further but the theory is that for instance the S&P500 index will move a lot after such an event, either up or down, it usually does. You hold both positions untill after the event, look at which way it moves and cancel the other. If it doesn't move you will have a small loss but if it does move you'll have a good profit. To be tested further

 

[Lord Flasheart]

Hmm I've been testing this on a demo account recentlyl. But I only enter right before some major economical event like a FED speech. Last time it didn't work out because I waited too long and couldn't get my positions filled properly until it was too late. Have to test it further but the theory is that for instance the S&P500 index will move a lot after such an event, either up or down, it usually does. You hold both positions untill after the event, look at which way it moves and cancel the other. If it doesn't move you will have a small loss but if it does move you'll have a good profit. To be tested further

This is very risky and as the spreads widen you are putting yourself in a dangerous position.The fact remains it serves no purpose as if you are in two positions you are flat.

 

[tar]

Another alternative is to hedge with a different market : crude with Brent , SP with Dow ... etc .

 

[scottuk99]

You can officially hedge with City Index.

In theory it sounds great but the times i have tried it I got spanked when trying to offset a trade going in the wrong direction, and like the other guys have said with the spread on top

 

[Pferd]

You can of course do it with options. But this strategy is only recommended in periods of high volatility. The study and understanding of the market you need to do this is more deep though, so if you are thinking about this as a "magical" solution, I am affraid it will not work.

Or alternatively if you are reasonable confident with your view of the market, you can trade the instrument of your choice (ie shares) and hedge the risk with options on the opposite direction. This work as a sort of "insurance" and it is a method widely used by "professionals".