I was charged a ridiculous overnight short fee

where does your 0.275 come from?

 

i divided it by 250 based only on business days. do not know if the rate by day should divide by 365 or something else.

 

360 days

 

Brutal charges... If I can't use (long) options to bet against, or with, these stocks I just don't trade 'em. But I guess I'm just a scaredy cat...

 

how T+2 settlement affects the short fee? if I just hold one overnight, you mean the broker will charge 3 days?

 

As I understand, you pay the short interest fee during that period as well

 

This really seems crazy. Would love to see a response from Tradezero.

 

Yeah, qote the synthetic before getting short... and don't short HTB names with this TradeZero shop.

 

"7x market rate cost for 1st night"
https://www.tradezero.co/pricing

It is completely straightforward and not hidden. It has been this way since the first time i checked Tradezero.

The puzzle is why anyone would use Tradezero to short stocks on these terms and why it makes sense for Tradezero to keep this term since it should scare every sane prospective short trading client away.

 

It is not crazy if you took the time to learn about shorting.

PS Love is not a word usually associated with Wall Street.