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What are you trading in your account, stocks? options? futures? also do you use margin? All of this makes a diffrence when choosing a broker.

If you use margin overnight, you need to be very very carefull if you choose IB, they can liquidate your account without warning even if you "think" you are covered. If you only buy options, no margin/spreads, then IB is your best choice no one comes "close" to the IB quality and price.

Do you want to sue the transfering broker or the receiving broker? Which brokers where they? How much is the amount you can "proof" that you lost because of that?

Does your broker auto liquidate? If yes you can look like the guy that had the goog calls. If they will issue you a call before liquidating, you are in much better shape.

More money in reserve would help you "nothing" if the market has a real crash, and bid-ask become so wide that your whole reserve will be eaten up just by the spread. Then your long position will be autoliquidated for the bid price, & your shorts for the ask price. Its only a question of time...

I agree, autoliquidation is a great thing. Not giving you 20 minutes to sort out things yourself is awful and creates unnecessary risk for clients. A lot of the confusion could have been avoided with a 15 minute rule or something similar with almost no additional risk, but IB would not do it...

Here you go, picking up nickels in front of a bulldozer... with the $2500 loss you probably gave back all your comission savings that you had with IB. But i think you can learn from that. Let us know how you handle this.

I would agree "some" answers here are professional, others not so much...

Right, I got my lesson. That's why I don't pickup any more nickels...

I guess you haven't had a problem with your broker yet with your broker. But unless a broker is "perfect" you want to know that when there is a one you will be made whole. There is a lot of people that have learnd that the hard way...

What do you mean by "filing a formal complaint in the trouble ticket system"?

Ok, it seems I am not the only one. Below is the quote of OCC re debit spread. Upside Maximum Profit: Limited Difference Between Strike Prices - Net Debit Paid Maximum Loss: Limited Net Debit Paid A bull call spread tends to be profitable when the underlying stock increases in price. It can...

So you are suggestins a broker having a "policy" of liquidating when there is no risk for them.. Sounds redicules policy for me at best, at worst its a unethical (ilegal?) setup for the broker how to take advantage of their clients.

Mabye myserious for some is opportunity for others.

No matter how the computer reads it the spread is covered & max risk is the debit paid as long as the spread is in place. It would have made sense the broker should not let me "exit" the spred, since exiting the spread could create risk. So unless the broker was on the other side of the trader...

You should appriciate that, some brokers would never do that even if its their mistake. So I would say stick with TOS

Was there any risk for account/broker to leave the spread as is, or was it necessary to liquidate & create arbitrage? (unless the broker is on the other side)

The order would have been rejected is the answer. Can't see any reason, unless the broker benefited in some way from the liquidaton.

Ok, but that dosent mean that there is any risk for the account or for the broker. The spread can either be hold thru expiration since you are fully coverd, or you can sell your debit spread for atleast 0 in any normal functioning market.