Explain to me how I'm the idiot...Because I simply dont understand.

E

El_Cubano

So starting after tweaks that IB made a couple weeks ago to some way TWS calculates stuff (forgot what the official announcement was) the cost basis of positions some times changes overnight.

I am fully aware of the wash sale rule. But my understanding is that when you take a loss on a position and re-enter the position the previous loss is "washed" and what happens is that loss gets added to you cost basis in the new position and thus lowering the basis in the new position.

So why is it that after these overnight basis adjustments my cost basis in the new positions is HIGHER? How could my cost basis go UP after this adjustment?

Look at this small position In BABA I took yesterday as an example with an entry around 124 (ignore the one sale...that was an execution error on my part)...But my entry there was 124ish...now...this morning it shows my basis as 129.5.

Can someone explain to me how this is the case? Because speaking to support they pretty much ignored my questions/points and simply said Im stupid and dont understand and talk to someone else. So here I am...someone explain to me how Im the idiot please.

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ElCubano said:
Cmon Man..Make sure everyone knows its you and not the original El Cubano.:D:fistbump:
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Sorry Everyone....the real ElCubano is very much not an idiot...just his little cousin.

But my question still remains...can anyone explain?
 
El_Cubano said:
So starting after tweaks that IB made a couple weeks ago to some way TWS calculates stuff (forgot what the official announcement was) the cost basis of positions some times changes overnight.

I am fully aware of the wash sale rule. But my understanding is that when you take a loss on a position and re-enter the position the previous loss is "washed" and what happens is that loss gets added to you cost basis in the new position and thus lowering the basis in the new position.

So why is it that after these overnight basis adjustments my cost basis in the new positions is HIGHER? How could my cost basis go UP after this adjustment?

Look at this small position In BABA I took yesterday as an example with an entry around 124 (ignore the one sale...that was an execution error on my part)...But my entry there was 124ish...now...this morning it shows my basis as 129.5.

Can someone explain to me how this is the case? Because speaking to support they pretty much ignored my questions/points and simply said Im stupid and dont understand and talk to someone else. So here I am...someone explain to me how Im the idiot please.

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1]NOT sure if you scale out\in that will change your cost, sounds like this is your deal here.
2]Could be a computer error, but looks like #1
MY cost for UPRO always goes up in an uptrend, since i buy + sell it. Same with SH or SPXS,SPXU.
[3] Could be data error?? I just found some on SPYG:caution::caution:
[3] THATS why i alternate between SPXU, SPXS, almost the same, but different.
WITH the passage of time, your cost has to go up in an uptrend. Double check.
 
If the trade was a loss your ACB will go up not down since the ACB is used to calculate the capital gain. Higher ACB means a lower gain which makes sense in the case of a losing trade.
 
GaryBtrader said:
If the trade was a loss your ACB will go up not down since the ACB is used to calculate the capital gain. Higher ACB means a lower gain which makes sense in the case of a losing trade.
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You're absolutely right. My brain had things flipped for some reason. Idiot status confirmed
 
The beauty of the brokerage industry is that they let us participate in an activity that we are unqualified for.

The only thing you need to worry about is when to hit buy/sell. They will take care of the rest. Just trust them.
 
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