Set Long and short limit order on same stock

[Guest Gabwilliams207]

Hi

I have been practicing on a demo spread betting account and this seems to work, however is it allowed and will it get my live account banned??

 

Before the market opens, I would like to set a long and short limit order on a stock.

i hope that when/if it gaps at the open then I will have an order open in one direction and then I will close the unopened limit order in the opposite direction.

 

is this allowed? 

 

Thanks 

[Caseynotes]

Hi @Gabwilliams207, yes as far as I'm aware that is allowed but you will run into a number of problems you'll need to consider first. Demo does not behave the same as live, especially in terms execution and when dealing with things like slippage. You may find your actual entry is a mile away from your order. Also, statistically gaps will often get filled very early on meaning that once your slipped order is actually filled price immediately reverses and heads for your stop. Stop placement is also problematic due to the inconsistent nature of the entry.

So when first trialing on live use as small a bet size as possible.

[Trevbeats]

On 8/18/2018 at 11:03 AM, Gabwilliams207 said:

Hi

I have been practicing on a demo spread betting account and this seems to work, however is it allowed and will it get my live account banned??

 

Before the market opens, I would like to set a long and short limit order on a stock.

i hope that when/if it gaps at the open then I will have an order open in one direction and then I will close the unopened limit order in the opposite direction.

 

is this allowed? 

 

Thanks 

Yes, I think you can do this Gabwilliams, as its a form of hedging.. but much better as your not in the trades until the position is hit.. But be careful as it could swing into both of trades if you not monitoring the charts..