Hi, 10 days ago I shorted sell a stock after 2 days it dropped around 30$ so I bought back making 100k profit, started to trade the same stock as day trader, paying commission as well. On Friday (yesterday), my account became negative 50k from over 150k positive, so I chatted with Thinkorswim.. They said the company had a spin off the day I shorted the stock, I shouldn’t make 30$ per stock, well nothing prevented me from buying the stock , they cannot adjust after a week as they allowed me to trade all the week same stock paying commission, now I have to run and find a lawyer to get me money back. Anyone had this experience before?
The dangers of being a speculative trader without knowing what you are doing? I saw this online......I DO NOT vouch for the accuracy of this statement: "The short seller is responsible for making dividend payments on the shorted stock to the entity from whom the stock has been borrowed. The short seller is also on the hook for making payments on account of other events associated with the shorted stock, such as share splits, spin-offs, and bonus share issues, all of which are unpredictable events."
Ex dividends were showing Nov 30, the spin off was completed dec 15 why the bank let me buy low without further advise, should be live trading .
