Can you be long and short at same time?

poguespan.jpg
 
cablemonster said:
oh 5hit. I just checked my simultaneous long short FTSE trade that I opened at 8am this morning, I am still down twice the spread, that sucks as I thought it was going to come back. I might leave it over night to see if it improves.
Click to expand...

Dude you seem to be following LV's narrow definition of raising trading costs.

You are not doing it right.


Here try this. Look at the DOW and FTSE.

1. Now would be a good time to go long on the FTSE (6381) and short on the DOW (15234)


I'll call a few on the EURUSD too if you promise to keep reminding me about costs ;)
 
Atilla said:
Dude you seem to be following LV's narrow definition of raising trading costs.

You are not doing it right.


Here try this. Look at the DOW and FTSE.

1. Now would be a good time to go long on the FTSE (6381) and short on the DOW (15234)


I'll call a few on the EURUSD too if you promise to keep reminding me about costs ;)
Click to expand...

You know the FTSE's closed, right?
 
Atilla said:
Dude you seem to be following LV's narrow definition of raising trading costs.

You are not doing it right.


Here try this. Look at the DOW and FTSE.

1. Now would be a good time to go long on the FTSE (6381) and short on the DOW (15234)
Click to expand...
Nobody is talking about arbing.
I'll say it again,
Nobody is talking about arbing.

Even if you wanted to do that, ES arbed with a blend of YM NQ and ER2,
better yet an exchange traded spread that doesn't increase
RT costs would be preferential.
 
It's not even arbing, and he's gotta hedge out the eur/usd aspect of the trade too. Don't really want to go down this route, it could get ugly.
 
Liquid validity said:
Nobody is talking about arbing.
I'll say it again,
Nobody is talking about arbing.

Even if you wanted to do that, ES arbed with a blend of YM NQ and ER2,
better yet an exchange traded spread that doesn't increase
RT costs would be preferential.
Click to expand...


Roger that but never said go long and short at the same time on the same instrument... Don't make me repeat it.

I have - let me repeat just one more time - always quoted different time frame setups. ie Trading EURUSD off weekly charts (eg: 200MA or 20MA crossovers etc) and hourly charts irrespective of direction based on TA setups.

Can you acknowledge this post so we not speaking on cross-wires.


Thanks :)
 
Hakuna Matata said:
It's not even arbing, and he's gotta hedge out the eur/usd aspect of the trade too. Don't really want to go down this route, it could get ugly.
Click to expand...

True, wish you would though, be something interesting to read
instead of wading through all the spam :)
 
Hakuna Matata said:
It's not even arbing, and he's gotta hedge out the eur/usd aspect of the trade too. Don't really want to go down this route, it could get ugly.
Click to expand...

yes the use of the word 'arbing' is wrong. it's a relative value tarde, in reality in would be a futures spread but as you said this is just a curveball and irrelevant.
 
Atilla said:
I have - let me repeat just one more time - always quoted different time frame setups. ie Trading EURUSD off weekly charts and hourly charts irrespective of direction based on TA setups.
Click to expand...

Hang on... are you saying that being long/short spot EUR/USD on the weekly timeframe is different to being long/short spot EUR/USD on the hourly timeframe?
 
Atilla said:
Roger that but never said go long and short at the same time on the same instrument... Don't make me repeat it.

I have - let me repeat just one more time - always quoted different time frame setups. ie Trading EURUSD off weekly charts and hourly charts irrespective of direction based on TA setups.
Click to expand...

:?: Yes he did.
 
Hakuna Matata said:
Hang on... are you saying that being long/short spot EUR/USD on the weekly timeframe is different to being long/short spot EUR/USD on the hourly timeframe?
Click to expand...


I can be long/short on the weekly time frame and would take short/long trades (if setup is there) on the hourly time frame 'respectively' !
 
Liquid validity said:
True, wish you would though, be something interesting to read
instead of wading through all the spam :)
Click to expand...

It's not even that complicated.

say you wanna go short FTSE vs SP500 - via the ETFs (or futures, whatever).

You pick whatever ratio you wanna trade them in, and you put the respective trades on - say 3 FTSE to 5 ES (no idea what the ratio is). Your trade is that the ES will appreciate faster than the FTSE will (or the FTSE will depreciate faster than the SP500 will. same thing).

So, you have sold UK stocks, recieved GBP, and bought USD denominated stocks with the proceeds. To do this, you've had to convert the GBP you recieved into USD - by selling GBP and buying USD.

Now, let's suppose that the value of the stocks stays the same in relative terms, but the USD depreciates against the GBP. Now, when it comes time to close your position, the USD you recieve for selling your SP500 ETFs, when converted back into GBP, isn't enough to buy back all the FTSE you've sold.

To avoid this, when you put the trade on, you hedge your exposure to GBP/USD by putting on a long GBP/USD trade. That way, any losses you incur from a rise in GBP/USD depreciation are covered by your long cable position.
 
Atilla said:
I can be long/short on the weekly time frame and would take short/long trades (if setup is there) on the hourly time frame 'respectively' !
Click to expand...

You do realise that it would be better to close one of the trades than open another position in an opposing direction, right?

Say you are long EUR/USD from your "weekly" strategy, but you get a short signal on your "hourly" strategy - it's better just to close your "weekly long" instead of open another "hourly short".

You see that, right?
 
Does nobody accept that doing this increases costs (those that think its a good idea)?
 
Hakuna Matata said:
You do realise that it would be better to close one of the trades than open another position in an opposing direction, right?

Say you are long EUR/USD from your "weekly" strategy, but you get a short signal on your "hourly" strategy - it's better just to close your "weekly long" instead of open another "hourly short".

You see that, right?
Click to expand...

It is too much of a hassle to keep closing and reopening the long term position just because you saw a short term setup or opportunity "imagine if you are a scalper or trading L2" , for example one may short JPY for a period of 1-2 years : BOJ etc etc , and still trade USD/JPY intraday ( Long or Short ) , this ofcourse is not done for hedging purposes or just to avoid taking a loss ...
 
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