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zdreg, As a side note, see page 26, Optioncoach's comments; i.e. the 50:1 leverage in a box spread did not represent risk to IB. Anyway, we both know Rrisch isn't talking box spreads and 50:1.

Your message (page 26) was appreciated. What are potential examples of bad liquidations which IB takes responsibility for?

Thanks for the info.

Not handling your question, but BTW, you had better be triply careful with using margin allowances with IB on illiquid options, as anything that would promote a liquidation would mean your stuff is dumped at market.

Funny in its own right.

Not yet. Only when IB pays the bill.

Incorrect. The clear win was for the IB customer. This thread so far has led to IB making corrections & improvements in their algorithms. Also, IB indicated to me on PM that they plan to give Elite Traders some more advanced notice before the auto-liquidations occur--no indication if this...

That's actually the best service you can provide to humanity.

For starters (ROUND I), so you can understand better how this is relevant to YOU, see page 26 of this thread, message by IDS: 1) IB says hundreds or thousands of auto-liquidations occur per day. 2) IB says several cases exist that improper auto-liquidations occur. Do you think it is the...

Seems interesting that your biggest joy is a product of ignorance.

It took the salesman about 20 e-mail exchanges before getting the account. The problem occurred because the salesman himself did not know about leverage limits, and I don't think 90% of the people viewing this thread understand anything about it.

...here, because the liquidations occurred because of leverage, it ignored leverage issues, and corporate saw that it MAY also have been ignoring margin issues.

As this might be of relevance to some people, this is what IB salesman said when the positions were all alive: "IB will logically reduce parts of your position in liquidation so that the position can be carried and margined correctly. Basically, the system begins to liquidate but is very...

Yes.

Answer: reparations and repairing. We have more than one broker, each has its advantages.

To Jimrockford: I think the difference is between liquidations for margin (the mass majority of cases), versus liquidations for other reasons. IB says the software is skilled specifically for the former. Taking responsibility for the latter and in for the unusual situations of the former...

It liquidated individual legs, leaving many loose ends, which definitely affected the delta. More importantly, I will explain clearly what I was referring to, as follows: 1. The "net liquidation value" is an average between the bid and ask. 2. The gross position value (GPV) refers to the...

Yet, in order that the not-so-common occurrences should NOT scare anyone away, IMHO, illustrating to everyone that when it DOES happen it would be sorted peacefully and easily is all we ask.

Thank you.

Because of my respect for you, let's say I take for granted there are some cases what you are saying is true. But IMHO, this case was totally different. It's literally IMPOSSIBLE that if/ when a broker is entitled to liquidate a position because of risk management, that he can bring his...