My question is simple-- Is it illegal to take long and short and short positions in the same stock at the same time?
I am asking this because of the decision on the case regarding Shankar Sharma who was banned for (among other things, maybe) selling and buying the same stock at the same time.
After all, isn't it very similar to a 'straddle' strategy in options? At times it is obvious there will be a big move, but can be either way. Whether one profits or not will depend on the stoploss, obviously.
Now, my question is--
1. Will a smalltime trader be barred for opening both long and short intra-day positions in an stock at the same time?
2. Where are these laws/rules guiding trading defined?
Regards, and sincere thanks for taking time to answer this.
I am asking this because of the decision on the case regarding Shankar Sharma who was banned for (among other things, maybe) selling and buying the same stock at the same time.
After all, isn't it very similar to a 'straddle' strategy in options? At times it is obvious there will be a big move, but can be either way. Whether one profits or not will depend on the stoploss, obviously.
Now, my question is--
1. Will a smalltime trader be barred for opening both long and short intra-day positions in an stock at the same time?
2. Where are these laws/rules guiding trading defined?
Regards, and sincere thanks for taking time to answer this.