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Friday, September 22nd, 2017

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My online broker made a mistake by not closing my position but creating an offset anti-position…?

1

My online broker instead of closing my position, “created” an offsetting anti-position. The positions offset and balance each other and every day I gain as much as I lose. Yes, it is fun to watch.
The broker can bring everything to zero by closing both positions simultaneously and without any loss to me. They are ok.
My question: is there a trading strategy to utilize this unusual setup to my benefit?
The positions are in a volatile market so they swing widely.

Any suggestions, known strategies, ideas?

Thank you in advance!

Comments

One Response to “My online broker made a mistake by not closing my position but creating an offset anti-position…?”
  1. Shake'n'bake says:

    If I understand what you are saying correctly. Then you have both a long and a short position in the same stock. If this is true, then you are actually losing money. You must pay interest on your short position.

    You can take advantage of this situation though. Wait until the stock is at either the high or low of its trading range. When it hits the low, cover the short and hold the long. Conversely, when it hits the high, sell the long and hold the short.

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