Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thanks for the response. You make a good point. There is a chance to mess up, but there is also a chance to profit.
I'm long and short the same market the same time because different strategies may be doing opposite things. Sometimes it makes the most sense from a risk perspective, to simply exit the market. Other times, it makes the most sense from a risk perspective, to add off-setting contracts.
From an emotional / psychological standpoint the latter (adding off-setting contracts) appeals to me more because there is added opportunity from this method. Using off-setting contracts can also reduce the profit sucking effect of whipsaws. But, as you mention, there are also more chances of messing up.
It seems there are other benefits to using off-setting contracts?
Of course, that is not what most people use it for. I cannot think of a legit reason in Forex or futures to do it (other than the aforementioned bookkeeping).
For newer traders out there, all the comments in bold above are incorrect. There is no risk or profit improvement to being long and short at the same time. There is no benefit to such a technique, except for ease in bookkeeping.
If anyone thinks there is monetary benefit to doing this in futures or forex, I invite you to provide an example with commissions, slippage and any interest rollover costs added in. I guarantee I can duplicate your simultaneous buy/sell, and save you money doing so.
@Big Mike: Why do you allow this thread, and threads like it, to perpetuate? It's a source of embarrassment to the forum, and serves no purpose other than to stand testament to dunning and krueger's thesis.
Honestly I agree with you, and am going to just close the thread at this point and ask everyone that is considering to do this to reconsider it. If you wan't to make a donation to your broker just buy them a nice gift instead.