RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:BBD.B held upGreenday
"a directional neutral account " ?
That is a new one on me but this is the best definition I found of neutral trading and I presume an account using that strategy would be used.
I don't think that short trades can be defined as such one is a trading strategy while the other is an order type and the account orders would still be reported as executed long or short.
Now I presume that this kind of trading is more for hedge funds..
Gives me something more to look at.
https://medium.datadriveninvestor.com/market-neutrality-how-it-works-in-simple-terms-239050927dd6
Greenday wrote: @ Club19 - This is from the article.
Every short sale on a Canadian marketplace must be marked “short” unless the sale is from a certain type of account (generally described as directionally neutral accounts), in which case it must be marked “SME” (short-marking exempt).
So who is allowed to have a "directionally neutral account" that is short marking exempt? My broker doesn't offer them. Your's doesn't either. The only people that I can think of that would be permitted to hold a directionally neutral account and not be required to "short-mark" (report short sales) are market makers. Any why wouldn't s mm not be required to report? Because they're manipulating the price of a stock to keep it in a trading range that they themselves set.