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

Quote from Osiris:
I have read a lot of back and forth about whether the position should have been closed immediately upon discovery by the OP.

I can understand the argument that an "error" position should be closed immediately, however, I think this depends on what type of error potion has been created in the account and if that is even discernable at the time of the error.

For instance, what if I log into my TWS one day, check my open positions only to find that at the start of the trading day my account included a net loss position in a stock I have never traded before. I then immediately "close out" the error position to mitigate my losses. I call IB only to find that the error was actually just a display error. Such that no such position actually occurred in my account, TWS just displayed that it had. So by closing the position, I have in fact created an actual position in my account that is net directional opposite the "error trade".
More...

That is what I'm trying to say too. To add one more point, you may have a hard time to prove that there is a display problem on your end. IB is also very slow to process compensation request. If IB refuses to reimburse you, you have no way but to sue it.
 
Thanks to everyone who participated in the discussion, especially those with rational posts.
It was long 7 weeks for me and this is my last post on this thread as I would rather forget this debacle.
One think to remember though, quoting IBj:
"IB's standard position in all trading issues is "manage your risk" because the market will not sit around waiting while we research a problem."

After discussing the issue on the phone with IB management we came to an agreement acceptable to both parties.
 
Congratulations to yourself and IB managers for sorting it out. Glad also to hear that this particular problem can't happen with (now) current versions of TWS.
 
Glad to see.

Thank You and Thank IB and IBj for their open participation of this debate.

They (and us) can only grow and improve from this. It was just unfortunate that IB and Zap had to experience some pain.

I think it would be of great benefit if IB (IBj) would post here, and even send an email to all customers; with an appropriate client response to potential erroneous positions.

I already have the answer; thanks to a PM from IB, but I do not think it is appropriate for me to disseminate that information.

My conclusion: This was a scary incident. I don't think that some understood what was at stake, and frankly I think this was a good lesson for everyone. I also feel that Interactive Brokers stepped-up to address the issue and participate with it's customers. I know from experience, from both sides, that this is rare in this industry.

The one thing that I hope IB learns from this is to grow their ability to "see" these important client issues earlier (easier said then done).

I will crawl back into my hole. Thank You.
 
Quote from zzzap:

Thanks to everyone who participated in the discussion, especially those with rational posts.
More...

My apologies to you for an earlier post that gave the initial benefit of the doubt to IB. Glad you stuck with it and got things cleared up, and uncomfortable to hear that they indeed had issues to led to this problem.
 
Quote from zzzap:

Thanks to everyone who participated in the discussion, especially those with rational posts.
It was long 7 weeks for me and this is my last post on this thread as I would rather forget this debacle.
One think to remember though, quoting IBj:
"IB's standard position in all trading issues is "manage your risk" because the market will not sit around waiting while we research a problem."

After discussing the issue on the phone with IB management we came to an agreement acceptable to both parties.
More...

Everyone has his or her idea of what is "acceptable." I'm glad to hear that you have resolved this situation in a manner acceptable to you.

I know there was probably a confidentiality clause of some sort, but I would love for IBj to give us all just a little "inkling" of what transpired. :D
 
Quote from IBj:

It is a problem that the risk was not covered when first recognized. IB's standard position in all trading issues is "manage your risk" because the market will not sit around waiting while we research a problem.
More...

What is IB's standard policy, when there is doubt as to whether or not a position actually exists in the account? If TWS, or a customer service rep, mislead a customer into closing a position which does not actually exist, will IB take responsibility for the resulting unwanted position? What procedure should a customer follow, when in doubt as to what position he holds? How can a customer best manage his risk that his true position is different from what is indicated by TWS?
 
Quote from jimrockford:

What is IB's standard policy, when there is doubt as to whether or not a position actually exists in the account? If TWS, or a customer service rep, mislead a customer into closing a position which does not actually exist, will IB take responsibility for the resulting unwanted position? What procedure should a customer follow, when in doubt as to what position he holds? How can a customer best manage his risk that his true position is different from what is indicated by TWS?
More...


Trust me! The customer rep will not tell you to close a position or stay in a position either way. They will just not say anything that are meaningful. All they will do is to read whatever is on their handbook.
 
Quote from zzzap:

Thanks to everyone who participated in the discussion, especially those with rational posts.
It was long 7 weeks for me and this is my last post on this thread as I would rather forget this debacle.
One think to remember though, quoting IBj:
"IB's standard position in all trading issues is "manage your risk" because the market will not sit around waiting while we research a problem."

After discussing the issue on the phone with IB management we came to an agreement acceptable to both parties.
More...

A lot of people here seem to have all the answers, but in truth, the answer isn't all that clear so anyone who vehemently defends either side is at least partly talking directly out of their ass. In the end, there was a problem with IB (which has apparently been fixed) and really the only question was to what extent they were liable for the loss. Frankly, I think IB should be thanking you for closing out a position at a REASONABLE time frame and loss considering it was not a trade your account could have supported by margining rules to begin with (especially considering that IB is even more strict about margin in many ways). Had you left their losing position in your account and waited the standard 20-30 minutes it takes to get through to the support line, the loss would have been much bigger (and that would assume they believed you when you did get through - which apparently they didnt, even with the IT department "looking into it" for 4 weeks). I have formed my own opinion of IB from my own experiences (3 problems in the month of october, ALL of which were admittedly IB failures and cost me money, one of which was ruled in my favor) but this experience did certainly open my eyes. I will say that I have a much greater appreciation for "risk" in a generalized sense, regardless of market or broker, and will price that into my trading in the future.

It turns out that, after all the nonsense and soapbox speeches, this had an "acceptable" ending for you, and that's really all that matters. Hopefully this experience hasn't completely soured you to trading.

Thank you very much for starting this thread - it has helped many (including IB); Anyone who said differently obviously had some unrelated angst to vent in a particularly idiotic and immature manner.
 
You must log in or register to reply here.
Back
Top