$52k gone from my IB account. What next, sue IB?

Quote from sprstpd:

This is in zzzap's own words. He clearly states he was aware of the position. Now I can understand doing one of two things here:

1. You know the GBP position is erroneous so you don't touch it at all. You contact IB about the position ASAP.

2. You think that the GBP position is probably erroneous, but you do trade GBP and there is a news event coming up. To save yourself from catastrophe, you close the position immediately. Then you contact IB about the position ASAP.

One thing you don't do is put limit orders to buy back the position so that if the news goes your way, you are out for a profit.
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In terms of the spirit of the law, if this was indeed the case (haven't been following the thread blow-by-blow, it's just too hectic) I'm going to have to agree with you.

This is really good sleuthing and conjecture on the part of the ayes and nays, but only the OP and IB really know what went down, who is resposible, and who has to take onus for this one.

Good trading,

JJ
 
Quote from sprstpd:

So if you have a position in your account that is erroneous and it is right before a news decision that would affect that position, trying to game the position for max profit is a good rule to follow? I'm sure this thread would *never* had been brought to light if zzzap's limit orders had been fillled on GBP for a profit.
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Possibilities:
- the position is real. Closing it turned out to be a wise decision.
- the position is erroneous. Closing it out actually opens up a new position. Depends on how fast you realise the position is actually opened, will you remedy and "close" it again. Then you may need to take 3-6 months to get back your loss. IB may even blame you this and that, so you can't get all your loss.
- the position is turned out to be a display bug. You act as a smartass and close it instantly. You will have a bad time to prove this to IB. Perhaps swallow the loss and take this as a lesson - don't close out everything you see on the screen instantly. Confirm it first.
- there are more to come but I skip it.


Easy to judge from hindsight because you know the answer. If you are opened up with tons of opportunities which may cause the weird position to open up, how will you react?

It is never easy, especially if you are in a hurry to make this decision.

If you are only allowed to make a decision within 10 seconds, how would you react? Can you act rationally when you see a big loss out of the blue :eek: ?
 
Quote from Trader_Herry:

Possibilities:
- the position is real. Closing it turned out to be a wise decision.
- the position is erroneous. Closing it out actually opens up a new position. Depends on how fast you realise the position is actually opened, will you remedy and "close" it again. Then you may need to take 3-6 months to get back your loss. IB may even blame you this and that, so you can't get all your loss.
- the position is turned out to be a display bug. You act as a smartass and close it instantly. You will have a bad time to prove this to IB. Perhaps swallow the loss and take this as a lesson - don't close out everything you see on the screen instantly. Confirm it first.
- there are more to come but I skip it.


Easy to judge from hindsight because you know the answer. If you are opened up with tons of opportunities which may cause the weird position to open up, how will you react?

It is never easy, especially if you are in a hurry to make this decision.

If you are only allowed to make a decision within 10 seconds, how would you react? Can you act rationally when you see a big loss out of the blue :eek: ?
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The same way we've all reacted when the unexpected has happend and a situation has gone against us, with a "Oh Shit, I Fucked Up" :eek: ... and move on to the next trade.

JJ

P.S. If you have never been in a situation where things have gone against you, despite the best laid plans, you haven't been trading long enough, if you stay with it, it will.
 
if your first reaction after seeing big losing position is to assume that position is a 'ghost' or doesnt exist, then your living in denial and should seek a different career. of course you assume is a true position,no matter how painful
 
Quote from JimmyJam:

The same way we've all reacted when the unexpected has happend and a situation has gone against us, with a "Oh Shit, I Fucked Up" :eek: ... and move on to the next trade.

JJ

P.S. If you have never been in a situation where things have gone against, despite the best laid plans, you haven't been trading long enough, if you stay with it, it will.
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You mixed it up between a trade you made wrongly (due to unexpected events) and "something coming out of the blue (you don't have a cue what's wrong)".

People know how to react because they are certain that there is a bug which executed a wrong error (hindsight).

What if you suddenly saw a big loss out of the blue? There could be many reasons which can cause it.
Calculation error?
Display bug?
Erroneous entries?
Submission bug?
???

"Oh Shit, Fucked Up and move on" can't be applied here.
Close it or not? It may be a right or wrong decision depending on what bug cause this sudden big loss appearing.

A sudden big loss out of the blue can be frustrating and emotionally affect your decision too. Many people can say they can still be calm in this situation, but few do in reality.
 
I'm not a proponent of IB at all, but if the OP saw the error and waited to see if it would be resolved in his favor, as sprstpd is alluding to, I think we all know the answer to this one.

JJ
 
Quote from Trader_Herry:

You mixed it up between a trade you made wrongly (due to unexpected events) and "something coming out of the blue (you don't have a cue what's wrong)".

People know how to react because they are certain that there is a bug which executed a wrong error (hindsight).

What if you suddenly saw a big loss out of the blue? There could be many reasons which can cause it.
Calculation error?
Display bug?
Erroneous entries?
Submission bug?
???

"Oh Shit, Fucked Up and move on" can't be applied here.
Close it or not? It may be a right or wrong decision depending on what bug cause this sudden big loss appearing.

A sudden big loss out of the blue can be frustrating and emotionally affect your decision too. Many people can say they can still be calm in this situation, but few do in reality.
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This sums it the best. I saw a "position". But was it real? It shouldn't be there in the first place. It's not so easy to manage situation like that in real time without a hindsight.
 
Quote from Trader_Herry:

Easy to judge from hindsight because you know the answer. If you are opened up with tons of opportunities which may cause the weird position to open up, how will you react?
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As I said before, there are only two options here. One is that you close out the position immediately and then contact IB. The other is to not touch the position at all and then contact IB. But putting out limit orders at advantageous prices right before a news event is not an option unless you want to look like you are trying to trade the position as a "no-risk" position.

By the way, this situation is very similar to some that I've been through in the past involving positions that I took in afterhours trading during earnings announcements. I would get into a position at what I thought would be a very good price, but I wasn't 100% sure. But as it turns out my fill price was in the "bustable" range of afterhours trading. So the counterparty could be filing for a bust of the trade, while the earnings trading is going on. Do I get out of my position? If I do, and the counterparty does get a successful bust, then I probably lose money. If I wait, there is a chance that the position goes against me. Anyway, the reason why it is similar is because the counterparty could be trying a "no-risk" trade in that if the position goes for him after his fill, he wins. If it doesn't, he tries to bust the trade and if he gets the bust, its no skin off his back. This has happened multiple times to me, and in some cases the bust was allowed and some cases it wasn't.
 
Quote from damnit:

19:55:57 Client submits multiple orders in various currencies. This is the first time we can know with certainty that the client is using and attending the TWS. Had he covered the GBP position at this time, the loss would have been roughly 12000 USD.

He had plenty of chances to take small lose but he let it ride.
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If the position was a mistake put into his account by IB (instead of mistakenly being sent by his computer or whatever) then he wouldn't have wanted to trade out of it at all.
 
Quote from JimmyJam:

I'm not a proponent of IB at all, but if the OP saw the error and waited to see if it would be resolved in his favor, as sprstpd is alluding to, I think we all know the answer to this one.

JJ
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No wishful thinking.

If you don't want to close it immediately (perhaps you see the position is recovering), place a stop loss a bit below your actual loss. If touched, you are out. No complaint even if it rebounce just after you are out.
If it recovers, try to push up your stop.


I'm more interested to know how people will react in my case.

You saw a position with a huge loss is suddenly up. Many possibilities why it may be here. Close it or not may be a right or wrong decision. How would you react?

Where can you check to make sure whether the position is real or fake?

There simply isn't a good and comprehensive way to solve this problem. The best way seems to pray that this thing won't happen to you. :(
 
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