Complaint - GME liquidation problem which resulted in huge negative liquidation value

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This is a margin call. You essentially, borrowed monies from your broker. Understand that the broker will protect its interests because huge losses you incur when you use margin, they will have to eat up before, they go after you. Closing the trade is the right thing to do for the broker. If not, you would have had larger losses. Naked calls is highly risky and you got into a trade without even understanding the risks. It is on you buddy. Read up on options and the various risk profiles before placing another trade.
 
Baldur01 said:
Thank you for the answer. You cant really manage you own positions, once you are negative. That is the problem. And just sitting, waiting for liquidation when they feel like it: 1 hours ,4 hours , 2 months is not an acceptable option. Theoretically, they decide if to liquidate you at -10k now or when they want for maybe 800k (just as an example).
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I feel for you. Hopefully you recover from this soon.
 
kmiklas said:
^^^ This.... lots of issues here.
1. A phone conversation... nothing in writing
2. You got margin called. I didn't read the rules, but I'd expect IB to treat it like a Stop order. Stop orders become market orders when a price is breached... and in times of market volatility there's no guarantees of time, price, or anything.
3. Basically they dumped your stuff out there at the worst possible time and price: when it was rocketing to the moon.
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Thank you for the answer.
1. It is not in writing, but they do record those phone calls. Obviously, if you are told on the phone "10min after the market opens", it should not be 4hours. And if there is a chance of 4h, they should say that.
2. I understand the point of volatility, which can happen a few minutes the market opens. During the 4 hours, there was not a huge option price volatility. Plenty of time to exit.
 
It's very important to trade via corporate account not INDIVIDUAL account if u are selling calls... Ind account they can sue you. In another way around your company just goes bankruptcy-everyday life...
 
I just wonder how IBKR gets your money? Does it sue you or just make it as a losses to them?

Talking about situations...I am sorry for you, but you cant do anything unless you have millions of dollars to pay for lawyers. They have always excuses...
 
Nobert said:
So you got toasted.

Fine. Forget about others ,,doing wrong", admit your own foolish mistakes, dust yourself off & move on.

Lesson learned.
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I agree totally with you. I did fuck up. However, there are certain mechanisms that should work. This fuck-up could have costed me 40-50k less withough IBKRs fuckup.
 
Now you know that markets are not always orderly. Sometimes MKT orders don't execute etc.

THIS IS NOT RETAIL PURCHASING. THIS IS TRADING. There are no guarantees, Customer Service to "make it right", returns, warranties, etc. You are the 12th person, who recently posted here who does not seem to understand this concept. They all took big risks looking for fast money, and get burned, then complain.

If one truly understands this, you will shake it off as an educational fee, and go back and trade. It seems you are well organized and proficient. These things happen. Now you know and can work to mitigate the risk. Just be happy you did not loose 6-7 digits. Best of luck
 
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IBKR has worse support ever. If you make premarket misclick, just selling AMZN for example 10$stock. You probably cannot reach support to request cancel trades...
 
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