Savvy investors must have an arsenal of tools and strategies available to employ as the market continually changes, adapts and corrects to news and events from around the world.

Why would I want to trade long and short on the same instrument, in the same account at the same time? This is a great question and the key to this strategy. As you know, trading signals can show up on any timeframe and traders frequently find themselves deciding between holding a longer term position or trying to trade in and out in a shorter time frame.

Now, what if we see a nice short setting up in our smaller time frame chart shown below right? We scalp against our long term position and manage each separately. The NinjaTrader 7 platform has a special setting in place allowing us to separate our long from our short position on the same instrument.

Can an invester/trader buy and sell short a stock at about the same time? | Yahoo Answers

If all goes well, we catch the pullback, however our longer term position stays in place and we can continue holding it for several days until the longer term trend ends. In reality, when we enter our short, in this example of 3 contracts, the broker closes out 3 contracts from our first long position and we are only 7 long.

NinjaTrader shows you both the position for your strategy and your account position. With this advanced technique, you can now hold a longer term position while at the same time take advantage of moves on the smaller time frame.

Traders who are able to successfully accomplish this technique and scalp additional profit from the minor moves in the market reduce risk in their longer term positions while at the same time can hold on for longer and more profitable runs.

This technique can take some time to master, so be sure to practice within your simulation account before trying it in the live market. If you need exhaustion gap trading strategy assistance or additional examples, feel free to contact me.

Options involve risk and are not suitable for all investors.

Simultaneous long and short in same stock

Before trading options, please read Characteristics and Risks of Standardized Option ODD which can be obtained from your broker; by calling OPTIONS; or from The Options Buying and shorting at the same time Corporation, One North Wacker Drive, SuiteChicago, IL No statement on this site is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice.

Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Powered by - Tasty CMS. Going Long and Short on the Same Instrument in the Same Account. Raymond Stein, NinjaTrader, LLC. Trader Education Stock Market News Educational Webinars for Traders Trading eBook The Options Insider Radio Network Market News and Education The Liss Report Syndicated Archives Trading and Filtering Continuation Trades Keeping the Context When Trading Patterns Wheats the Matter with the Grains?

Strategy: Go long and short the same stock for possible profit

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