Thanks, Peter. I did calculation myself ever since last year. That is why I could detect twice of mistakes they made last year. Actually, you really don't have to go through those trouble, like using the everyday closing price of your short position, etc. All you need to do is to use the the figure on margin when you first initiate a short position, and you will see they charge you the 7% interest on that amount until you cover your shorts. Your way is the same like Datek describes, which is really a long way for the same result. Jon Normile's example has made it very clear, you seems not to quite understand his example.
Well. I am not over-stating my complaints. It is their company and their business, and they can make any changes at any time they want. But I do think when they made this kind of change, the customers deserved to be notified, period. Do you have their newsletter they just sent out about 3 weeks ago, the only one as I remember? They specifically mentioned that the short proceedings do not earn 4% interest, but they missed the fact, on purpose, that you will be charged 7% interest instead. How convenient!!
Best wishes for your investment. |
