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Direct MessagesDate/Time: Sat, 20 Apr 2024 15:30:15 +0000
TransAct - Risk Liquidation Fee
View Count: 1068
| [2019-10-17 20:09:55] |
| User316362 - Posts: 210 |
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Apparently TransAct now has a disclosure agreement that requires one, when opting in for Direct Sierra Charts (not using their AT charts), that shows a $5/contract Risk Liquidation fee. My understanding is that if one hit's their daily risk limit that they will be charged $5 for each contract that was traded in addition to the standard commissions during trading. So for example, if one rades 10 contracts and hits their risk limit, one will be charged $50 extra. I'm told that this is because TransAct's contract with Sierra has expired. So this is not making much sense to me. My questions are: 1. Does Sierra get this Risk Liquidation fee or does TransAct get it? 2. From what account does it come from the Brokers account or Sierra's account. 3. Why is this a result of not having a contract with Sierra? Thanks, |
| [2019-10-17 21:58:31] |
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I'm told that this is because TransAct's contract with Sierra has expired. So this is not making much sense to me. 1. No this goes to Transact. There has never been anything in the relationship between Sierra Chart and Transact involving trading fees. It never has existed. It does not exist now either. 2. Obviously would come from your trading account with Transact. 3. No idea. Sounds like a convenient way to shift responsibility from answering the question. You are smart for asking questions about something that is not logical that you are hearing from Transact. Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, *change* to the Teton service: Sierra Chart Teton Futures Order Routing Date Time Of Last Edit: 2019-10-17 22:12:03
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| [2019-10-18 06:20:05] |
| Marmany - Posts: 301 |
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For info, I moved away from TransAct a couple of months ago but when using them had the Sierra Global Profit/Loss Level set tighter than the TA Daily Risk Limit. This will get you out of all situations - apart from client side computer failure.
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| [2019-10-18 07:05:14] |
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The functionality the user is mentioning above is documented here: Global Profit/Loss Management Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, *change* to the Teton service: Sierra Chart Teton Futures Order Routing |
| [2019-10-20 14:17:52] |
| User90125 - Posts: 715 |
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@User316362 A senior broker at Transact's wholly owned FCM, Infinity, explained the $5 per contract Risk Liquidation Fee as a nuisance fee to keep traders from using their daily risk limit as their stop loss. It has nothing to do with the Transact/Sierra changes. Use Sierra's Global Profit Loss Management instead, as suggested by @Marmany, and you should be OK. Date Time Of Last Edit: 2019-10-20 19:23:18
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| [2019-10-20 15:28:38] |
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But does this fee only apply when using Sierra Chart?
Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, *change* to the Teton service: Sierra Chart Teton Futures Order Routing |
| [2019-10-20 18:44:54] |
| User316362 - Posts: 210 |
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in response to number 5. Thanks for the cleared up information. But also I don't believe it's just $5 as a total fee. It's $5/per contract traded that day as a penalty. That's extreme. It's extreme enough for me to consider leaving TransAct out of general principle. #6 above. It has nothing to do with Sierra Chart. It's TransAct brokerage related. |
| [2019-10-20 19:13:34] |
| User90125 - Posts: 715 |
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In my discussions with my broker, I was only concerned that this fee would be charged even when the system did not liquidate you; in other words, on ALL trades placed - which would be absurd by current day standards. It is only charged at $5 PER CONTRACT that is liquidated when the Transact's YesTrader Risk Liquidation System determines that your positions should be flattened and/or cancelled. Nothing extreme about it at all. Manage your risk properly, and you wouldn't have to think about it. |
| [2019-10-20 19:29:44] |
| User316362 - Posts: 210 |
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#8 Of course, managing risk properly is the solution to avoid this. And not an issue if one uses the sierra risk management tools to avoid this. But what I was told was not that it was on the liquidated contracts (say you had 10 contracts active when risk limit was hit for $50 + commissions), but for the total number of contracts traded for that entire day which could be much higher. Just trying to get clarity since TransAct obviously has different stories from different people. And why not explain in detail the mechanism in their disclosure, which they don't. You may recall some of us were told it was not having a contract with Sierra that helped initiate this charge. Which it is not. Has nothing to do with Sierra. In any case, if only on the "liquidated" contracts that's at least somewhat understandable. |
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