Tradezero Strikes again.

G

GotherL

So I made a post previously about tradezero charging me $350 on an short overnight fee. Today, a new bizarre fee was taking out of my account!

I shorted ABIO on Thursday at 16.60. I covered the next day at around $14.40 but the funds did not seem to go back to my account the following day. So I ask support and here is what I got.

Tianna
You were holding the position overnight, and each day the stock is mark to market

Which means that whatever price the stock closes at the system will add your profits or deducted your losses
Tianna
You entered at 16 but it closed at 19
Tianna
so I loss $196 like that?
Yes, because that is how mark to market works
Tianna
I have not even heard of a such a thing.
Understood, but that it how the system works
Tianna
Ok I will be consulting an expert on this.
Understood
Tianna
Is there anything else I can assist you with?


So the TZ support just told me I loss $196 even though I shorted ABIO at $16.60 and covered at $14.40 because it closed at $19 (4pm) and something called a mark to market took effect? Has anyone even heard of such a thing? (This sounds more sketchy than options with their decay value crap.)

Either way this is the last time I will ever hold anything overnight on Tradezero. These guys are fk'ing ridiculous with their not-so transparent fees
 
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GotherL said:
So I made a post previously about tradezero charging me $350 on an short overnight fee. Today, a new fee was taking out of my account I never even heard before.

I shorted ABIO on Thursday at 16.60. I covered the next day at around $14.40 but the funds did not seem to go back to my account the following day. So I ask support and here is what I got.

Tianna
You were holding the position overnight, and each day the stock is mark to market

Which means that whatever price the stock closes at the system will add your profits or deducted your losses
Tianna
You entered at 16 but it closed at 19
Tianna
so I loss $196 like that?
Yes, because that is how mark to market works
Tianna
I have not even heard of a such a thing.
Understood, but that it how the system works
Tianna
Ok I will be consulting an expert on this.
Understood
Tianna
Is there anything else I can assist you with?


So the TZ support just told me I loss $196 even though I shorted ABIO at $16.60 and covered at $14.40 because it closed at $19 (4pm) and something called a mark to market took effect? Has anyone even heard of such a thing? (This sounds like bs options with their decay value crap.)

Either way this is the last time I will ever hold anything overnight on Tradezero. These guys are fk'ing ridiculous with their not so transparent fees. If anyone has 5+ figures with them I will be extremely hesitant of leaving my money in there.
More...


Mark to market applies to both long and short positions to calculate your margin requirements With short positions cash is added to your account if the stock goes down. if the stock goes up you have money taken out. That process called marked to market.
on day one you shorted at $16.60 the stock closed at $19. $240 should have been taken out of your account. you are considered to be now short at $19. You covered the next day at $14.40. now you should be given a credit of $460. At this point you now have a GROSS profit of $220. ABIO is hard to borrow at most places. Your net profit is$220 minus any short sale fees.
What were your short sales fees?
 
$35 overnight fee.

So this fee is actually legit? I must be the only one who have no clue of it since I rarely hold any position overnight. But thanks for the explanation at least. I can now rip knowing how I got screwed.

Also, it closed at $19 but I shorted it at $16.60 which was afterhours sigh!
 
zdreg said:
Mark to market applies to both long and short positions to calculate your margin requirements With short positions cash is added to your account if the stock goes down. if the stock goes up you have money taken out. That process called marked to market.
on day one you shorted at $16.60 the stock closed at $19. $240 should have been taken out of your account. you are considered to be now short at $19. You covered the next day at $14.40. now you should be given a credit of $460. At this point you now have a GROSS profit of $220. ABIO is hard to borrow at most places. Your net profit is$220 minus any short sale fees.
What were your short sales fees?
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ABIO -70 $19.21 370 -300 $0.00 $12.60 -$196.70 $118.25 $0.00 $9.38 $305.57

The -$196.70 was my start of day unrealize so that's how much this fee costed me with this mark to market thing.

I am still really confused but whatever!
 
I don't think those numbers are really relevant or easy to understand without the full picture but here goes.

70 share size, $19.21 close, buy-sell quantity 370-300, cost 0.00, closing price 12.60, sod unreal -196, real p/l $118.25, unreal p/l $0.00, total fees $9.28, net change $305.37.
 
zdreg said:
Being confused is acceptable. Not doing something about it is not acceptable if you want to make a career out of trading.
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Also, I am confused but if they charged me $196 for that then my buying power should be accurate after a lot of consideration. Don't wanna stress myself out figuring out the exact math. All I need to know is to never hold any position at Tradezero anymore.
 
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GotherL said:
so I loss $196 like that?
Yes, because that is how mark to market works
More...

Sorry to hear about your loss buddy, even though you timed that short trade correctly.

That sucks if you ask me.
 
Tradex said:
Sorry to hear about your loss buddy, even though you timed that short trade correctly.

That sucks if you ask me.
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Yep, what really sucks was I was up $800 on Friday and $300 in premarket today. After around 4 years of losing money daytrading I finally thought I had this. I traded 2 weeks straight with a profit which never happened before. (I am usually bust within 3 days..) Then when 7 am hit everything went against me and I blew my $1000 initial deposit. So I was pissed cause i thought I should've had around $500 more in my account and Tradezero either was delaying it or made a mistake with the numbers. Turns out I am just ignorant.

Guess I am gonna have to exploit the CERB to give me another $2000 so I can fund my account again. (Already owe them $6000 which I am sure their gonna deduct off my tax money or worse.)
 
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GotherL said:
Yep, what really sucks was I was up $800 on Friday and $300 in premarket today. Then when 7 am hit everything went against me and I blew my $1000 initial deposit. So I was pissed cause i thought I should've had around $500 more in my account and Tradezero either was delaying it or made a mistake. Turns out I am just ignorant.
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That's alright GotherL, you lost a battle but not the war.
Just bite the bullet, learn the lesson and move on, there are tons of trading opportunities just waiting for you every single day, in the stock, the futures and the Forex markets.
Best wishes.
 
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