I’m using ATM strategies in ChartTrader (NT8). If I’m currently holding a long position (for example) and want to take a short position in the same market with a different strategy, how can I do this without closing out the original long position?
You can’t. That’s not how it works.
If we’re talking futures here, let’s assume your position
at the broker is, say, LONG 2 for ES.
If you submit a sell order to ‘start’ a short position, the
broker takes your SELL 2 order and closes the LONG 2
position. At the broker, inside each account, you have
just one position per instrument. The broker sees BUY
and SELL orders and adjusts that single position
accordingly.
[This can work in your favor, too. If you are LONG 2, and
submit a SELL 4 order, the resulting position is SHORT 2.]
If you want a second position, esp one that opposes the
first position, you need a second account.
[Two positions in the same direction is still just one position
at the broker. It is the NT software that knows you have, say,
two LONG 2 positions – your broker only keeps track of the
total aggregate position of LONG 4. The NT software knows
to close each LONG 2 position with SELL 2, or close the entire
position with a single SELL 4, which takes your broker position
back to FLAT.]
Make sense?
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Yes it does, thanks for the reply. I was afraid this wasn’t going to be available. My plan B is just go in a similar market (ex: ES & YM) with the opposite trade, or possibly same market/different expiry (ex: ES March & June contracts); although the volume may be fairly low on one of them much of the time. Thanks again!
Well, you could be LONG 2 in ES and then submit the
opposing direction order to MES, ie, SHORT 20 in MES.
Just be aware, if you’re trading in a prop account, this
could be frowned upon. Apex, for ex, doesn’t like when
you do that.
Actually, my main go to is MES, ES is too rich for my blood. And definitely not a prop account. Thank you for the info!