So I just noticed that boxed positions (both long and short) is available in TOS, and when checking with TOS trade desks, they seem to not like the idea of it, saying that it wont provide any real profits, because whichever direction it moves, it will do nothing but use buying powers provided that it's 1:1 ratio to both long and short.
True, but if timing is right, then it can give more benefits?
I give them specific examples, where stock A is traded at 100$ per shares on 9 AM. Then at 10 AM, this stock crashed to 90$ per shares, where I covered the short positions.
Then, later at 11 AM, it skyrocketed to 110$, so I sold long positions to close. In both ways, I could make 10$ per profits for each directions.
True, the reality will be really complicated enough that the odd will be not happening like this scenario, where just because I buy to close (covering the short position at 90) doesnt mean it can't crash even further to 80 (let's just say this numbers), so I would be still 10$ per share net negative if that occurs, but at the end of days, stock will go up should the stock valuation is right around 110$ per shares.
Like if I dont mind it holding it for a while until it goes up to 110$, which is my target price.
Typically, when I long on position, it goes down for next couple of days, but if I can open boxed positions, then it will help to offset some losses (when I covered the short).
Sure, there will be margin maintenance and interest fees, and I dont mind it costing some extra fees, but is there something wrong in this scenarios? They keep saying that there is no real benefits whatsoever, but more disadvantages for the fees and margin maintenance, not to mention buying powers, which I totally agree to.
After talking to them, I feel like I am missing something here?
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