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The reason why Ninja Trader supports it in Sim mode is likely for one of these two reasons.
1) You used to be able to do this in the Forex cash market. The biggest example was MT4. If you had a long, opening a short would not close the long, you would have two open positions. In order to close a position you had to use a "close position" command.
I don't think all forex cash brokers did this. I don't remember MB Trading supporting this but I could be wrong.
2) It is legal in other jurisdictions. Along with increased leverage, like 400:1, brokers in other countries may offer such features. However most of these brokers will not allow US citizens to open an account...
I recalled I explored this strategy just over a year ago and had several email exchanges with my broker Mirus.
Aside from confirming the ability of NT to simulate this, Mirus confimed I could do this ie go long and short at the same time as long as i did this through two seperate accounts with them (which had to be in the same name).
I assume the fact that it is transacted through seperate accounts must satisfy the rules/law. I never actually persued it as I determined there was not really a viable strategy there ie double the margins, running two funded accounts etc - but I did get as far as receiving the paperwork from Mirus to open the 2nd account.
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I believe there is a difference between "having" long and short positions at the same time and "entering" or "creating" long and short positions at the same time. The latter is obviously a wash trade. but the former may not be. Note that the rule you quote references "orders" and not "positions". Either way it's probably something safest to avoid. As solotrader said it is a criminal offense in the US and people have been penalized for wash trades.
The wash sale rule ( 534 ) is designed to stop people from doing 'bad' things. It is also prohibited by the Commodity Exchange Act.
I comes down to why would anyone want to go long and short at the same time. No matter what you do, at the end of the day, it is still your net position that matters.
Bart Chilton spoke about it last summer in Chicago talking about firms cheating by trading with themselves.
I can think of perhaps one reason to go long and short at the same time. When you pairs trade, isn't the objective to drop the loosing side and go the way of the winning position? Hence, once you've established the trend you go with the trend is your friend rule?