Trading Multiple Accounts

[ericd2281]

Matt- I am interested in opening a spread trading account in addition to the account that i use to trade MTP signals. Because of this I may have offsetting positions i.e. be long Sept. CBOT Wheat in one account and short Sept. CBOT Wheat and Long CBOT Corn in the other account.

Any suggestion on how to set this up?

After calling my broker (Open E Cry) and found out about CFTC Regulation 1.46 that appears to say that a customer cannot maintain offsetting short & long positions across multiple accounts.

Thanks!
Eric

[Matt Bowen]

Hi Eric,

Is this a cash account or sub account? Sub accounts are usually reserved for Hedgers, but I'm not sure why they are throwing rule 1.46 at you for having a spread trade on and an outright position... I mean the margins are completely different on spread trades...that's one of the main benefits, but that's beside the point. Why can't you have a spread on along with the outright position, that's stupid, hedgers do this all the time??? If that's the case, then get a new broker.

Now you wrote:
Because of this I may have offsetting positions i.e. be long Sept. CBOT Wheat in one account and short Sept. CBOT Wheat and Long CBOT Corn in the other account.


The only problem I see is that you are trying to do a spread here that does not exist because Intramarket spreads are created only as calendar spreads. You are long and short futures in the same market, but in different months. Intermarket spread are going long futures in one market, and short futures of the same month in another market. An Inter-Exchange spread is similar markets, but on different exchanges. These spreads can be calendar spreads using different months, or they can be spreads in which the same month is used but remember, the contracts occur on different exchanges.

All the best,

[jtrade]

Eric - I think you need a broker who understands spreads somewhat better !
As Matt says, if the spread account is a sub-account, there should be no problem.

I think Matt may have mis-read your comment about being long & short Sept wheat : you mean an outright position in one account, and then in the sub-account a wheat / corn spread.

Btw, the current seasonal long Sept Wheat / short Sept Corn trade is doing really well.

J.

[Gene]

Hi Eric,

Trading FUTURES SPREADS is probably THE BEST choice for a trader.There are only a few brokers able to do a good job when we trade futures spreads. Marco Bertuglia from INFINITY (111 West Jackson Boulevard, Suite 2010 CHICAGO, IL 60604) is probably in top; if he is not in the office, you can talk with Sarah Schranz - she works with Marco. Their phone is 1-866-434-8401 toll free or +312-274-3414 (or 3413) international.
Email: m.bertyglia@infinitybrokerage.com
You can trade:
-INTRACOMMODITY spread;
-INTERCOMMODITY spread;
-INTERMARKET spread.
A few years ago JOE ROSS (I assume you know who is Joe) reccomended me to work with Marco. Actually JOE ROSS is using him as broker for trading futures spreads.
INFINITY clears through MAN, Rosenthal Collins and Transact.
I hope it helps.
God trading.
Gene

[ericd2281]

Gene- Is that who you are using for your Broker for spreads? If so, how has your experience been? Any thing good or bad I should be aware of?

Thanks!
Eric

[Gene]

Hi Eric,

For almost one year I'm not trading because of a personal tragedy - my beloved wife had cancer and passed away this April. I hope everything is still OK using this broker. Call him, tell him an acquaintance of Joe Ross told you about him, ask any question you have, ask to set-up for you a paper trading account and see for yourself.
Joe Ross is having his Futures Spreads trading account with him. Joe is teaching Futures Spreads around the world for decades.
For an update about this broker feel free to contact Ross at ross@tradingeducators.com (tell him you are member in a trading forum where Gene is member too and you have his email from me - his email is not public as far I know).
Regaeds.
Gene