|
PureBytes Links
Trading Reference Links
|
GREHERT@xxxxxxx wrote:
> I got an idea about shorting stocks.
>
> I figure if I went long
> and short on the OPEN (NYSE) I'd probably get the same price and two $5
> comissions. Then to short I'd just sell my LONG.
>
> Question #1.) Would I get the same price on the OPEN?
> Question #2.) Is this Kosher?
Not quite that simple. In order to do this, you need to first have two
accounts. In account A you would have, say, 1000 INTC short (on an uptick), and
in another, 1000 INTC long. The two would offset each other until such time as
you wish to go short. Then, you sell your long position (which was bought, so no
uptick), which has the net effect of placing you short. When it's time to cover,
you replace the 1000 long position.
The downside to this is that it ties up quite a bit of capital for the luxury of
getting off a short on a downtick here and there (in this case, 2000 INTC worth,
committed full-time to this scheme). Unless you plan on trading the short side
of a particular stock an awful lot, or have excess capital sitting idle, this
would not be a very productive way to trade.
Regards,
A.J.
|