An open short position and a long ATM with stop loss

[chumpsky33]

Hi

If i have a short position open without a stop loss or profit target and while the short position is open i place a long market order with atm with attached stop loss, then when the stop is hit, a short position will automatic re-open is this correct?

thanks in advance

[NinjaTrader_Kate]

Hello Chumpsky33,

Thank you for your reply.

Yes, that would then leave you in an unprotected short position. The long entry would close out the short position but the profit target and stop for the long would remain. If either were hit you'd end up short.

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