Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Jon Tara who wrote (7482)	3/23/1998 3:27:00 AM
From: dumbmoney	Read Replies (1) of 16892

<< According to their disclosure statement, they charge interest on your unrealized loss on a short position when they "mark to market". >> Aha! This was my question (the answer was not on the web site, btw). My current broker (Waterhouse) does this too. It's a raw deal. Of course, if you have cash in your account you will not be charged interest, but cash will be moved from the money market to the short account (another raw deal since you lose the 5% interest). On the flip side, if a short goes down, I assume Datek will move the "excess" cash from the short account to your cash account. Correct? [ Aside: I guess we've figured out how the brokers can charge such low margin rates ... by screwing the shorts! ]

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