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He is completely correct..been there done that
>I think my broker (LFG) just cost me about $60, but before I let him know
>what I thought about it, I wanted to make sure he didn't have a case.
>
>On Monday last week, I instructed my broker to roll my $20K TBill which was
>to mature on Thu. into the biggest TBill he could. At that time, my account
>was cash debit $3K and thus had a liquidating value of $17K. ($20K TBill
>value less $3K cash debit). I expected to get rolled into a $15K TBill
since
>at maturity of the $20K TBill, my account would have $17K cash and a $15K
>TBill would cost about $14.8K. BTW, there are no options in my account and
>my margin requirement is under $4K for the futures positions I hold.
>
>On Thursday, I discovered I had been rolled into a $10K TBill. When I
>inquired, my broker responded:
>
>--------------------------
>When you ROLLED the bill, he cannot break it down in increments of $
>5,000. The minimum is $ 10,000. SO when you instructed me to roll the
>bill for as much as I could, that is what he did.
>
>However, if you just would have let the bill expire without rolling, you
>could have purchased a $15K bill the following week.
>----------------------------
>
>Does this explaination make sense to anyone? Especially you brokers out
>there. What I'm reading is that you cannot let a $20K TBill expire and buy
a
>$15K TBill *on the same day* (ie a ROLL) because it involves a $5K
>increment?
>
>This sounds like a bunch of baloney to me. But before I gave my broker a
>piece of my mind I thought I would first check with all you guys just in
>case there might actually be something to that 'no $5K increment on a TBill
>ROLL' story. And I would feel stupid ripping my broker if it was true.
>
>Thanks guys,
>
>Scott Hoffman
>Issaquah, WA
>
>
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