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Strategies & Market Trends : DAYTRADING Fundamentals
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To: LPS5 who wrote (9319)7/1/2000 6:32:11 PM
From: Apakhabar  Read Replies (2) of 18137
 
LPS5...

Thanks for the NASD notice. As a remote trader with not much background on the regulations, I had thought if I can do something as simple as implement the strategy I described it must be very common, and I assumed it to be legal. When I said "two accounts" I was unclear; I meant with two different brokers. I've never actually done it, but it would be the easiest thing in the world for me to short something in my Datek account and then go long simultaeously in my Momentum account. So, is it definitely illegal to do so (the NASD assumes the rule is being broken at a single brokerage)? How, in practice, would a remote trader get "caught" doing this, if it is illegal?

Finally, could somebody explain the term "shorting against the box" to me? I always thought this was taking a temporary short position against one's long in order to lock in profits for the purpose of delaying the sale (for tax reasons).

Feeling well behind the curve on this subject...
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