Quote from rallymode:
Actually, the size wasnt that much. It's only a 30 lot vbi equivalent. CFE charges $1,500 margin for this position. It was the convergence that killed his account. The position he had is derived from the vix futures switches which observed a black swan by inverting >5 handles in the front months. Given the short life of the vix futures and even shorter for the vix ops, i honestly think that IB didnt understand the risks themselves prior to the recent vol spike. Margins going up 10x in some switches over several days is quite telling. I wonder how many accounts went debit before they realized the true risk of certain positions.
Better late then never i suppose, regardless the OP does have a valid reason to be upset but not excused.
