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IT is possible to be short and long at the same time in one account.
It is called shorting the box. For example, you own 1000 shares of MSFT and
you want to short 1000 shares of MSFT at the same time, you short the box and
your long and short at the same time using only one account. There are no
advantages to having two or more accounts with the same broker unless your
trading someone elses money and there certainly no tax advantages to trading
two accounts, in fact, there will be more paper work, and more confusion
should you get audited.
Call your broker and ask how to short the box, if your broker does not offer
this option then your with the wrong broker. I can short the box and have done
so on occasion, in fact shorting the box allows me to short ona down tick
without violating
SEC rules, since I'm borrowing from my own account, plus there is no chance of
having the short recalled. Also it is possible to switch out a position. i.e.
go long on a stock, then short the stock using only a couple of key strokes
and the click of a mouse I go from long to short, of course on a switch out, I
must wait for an uptick or I can create an uptick on nasdaq level 2 and then
go short. Call your broker about sorting the box, if it is not available, then
it is time to switch to a more sophisticated
system.
William
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