Is it legal to Trade from two accounts Simultaneously

Discussion in 'Beginners Guide' started by TraderTarun, Nov 20, 2016.

  1. TraderTarun

    TraderTarun New Member

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    Hi Seniors,
    Is it legal if I have two trading accounts with different brokers and if I take the following orders @ almost same time:
    Order 1: buy Nifty Future from Broker1 trading account AND
    Order 2: Sell the same Nifty Future from Broker2 trading Account
    Now,continue with the trend in one account and book the lose in another.
    Profit and loss will depend upon Stop Loss.
    It will be helpful if someone let me know the pros and cons of this.

    Thanks,
    -TraderTarun:)
     
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  2. Smart_trade

    Smart_trade Moderator

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    One cannot open 2 trading accounts in one name with one broker.But with two different brokers one can have two accounts provided he discloses while opening the second broker account that he already has a trading account with the first broker.

    You can do long trade in one account and short trade in another account but it will give no advantage if you want to trade for profits.If the idea is to flaunt your successful trade and how much money made while suppressing the losing trade then it is fine but I am sure you don't want to trade for that.

    You can achieve the same result by taking trades in one account and reversing at stoploss point.Try that and you will see that in 2 accounts you will need double margin and it achieves no advantage whatsoever.People keep 2 accounts for if one broker's software gives problems,they can trade in the second account and then reverse when both brokers working fine.

    Smart_trade
     
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  3. billi

    billi Member

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    I guess he already mentioned in his thread of having two accounts at two different brokers, however if we open same trades in two opposite directions at the same time we will surely win one and lose the other which does not makes any sense.
     
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  4. adg123

    adg123 Active Member

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    I think his intention is to let the profit run in one A/C and stopped out quickly from loosing A/C.

    It is a full time directional strategy and LOST is sure in choppy market by hitting multiple Stop Losses.
     
  5. travi

    travi Well-Known Member

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    Theoretically and practically, using two a/c's can work but its not a secret.

    In certain mkt conditions, esp. Trend days with no gap openings, it'll work the best. Recently, 20-dec, it was a flat opening and then 100 pt NS, 250 odd on BN move etc
    so one can put two opp trade with some SL and not get caught napping if it moves.

    The worst is when it whipsaws, takes out both SL, and your EoD is a -ve MTM.

    With a bit of statistical checks from Vagar11 data, you'll end up with a significant loss over any period of time if done everyday. On many days, trend is already set with gaps.
    So one can be wise and go with one trade. If there is a vola surge in the horizon, you don't need two ac's, look at option strategies like long straddle/strangle etc and they will also serve the purpose.
     
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  6. Hulu Girl

    Hulu Girl Member

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    Having 2 accounts of different brokers is common now for every trader, there are many traders using 2 or more broker for trading. So it is practical. Legal or not , i dont have knowledge about that but if traders are using more broker then it is their personal choice.
     

  7. Steve_1982

    Steve_1982 Active Member

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    Nothing illegal about it as far as I know!
     
  8. tradejee

    tradejee Member

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  9. NYSE

    NYSE New Member

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    It's legal and result is negative ,if you have secret then you can use your method in future/option with single ac.
     
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