Found that dude trading CL with an IB account

Also, do note that IB calculates (or used to) margin thusly:
margin = min(whatever they decide, current price * multiplier)

Accordingly, our Mr. Shah, who just couldn't resist buying 212 contracts, was charged margin at $30 a pop :D. I am sure Mr. Shah didn't think for a moment how the fuck his $77k account is carrying 212 CL contracts rofl :rolleyes:
 
gaussian said:
While a mistake - not an unusual one. This probably had to do with signed vs. unsigned floating point numbers.

Generally speaking two very bad things can happen that are difficult to account for:

1. Numbers that are excessively negative or excessively positive. These can cause the number to "roll over", and in the case of signed integers cause massively negative or positive numbers.

2. Floating points - these are generally a mistake to use in finance in general.

While you might call a developer stupid for not thinking a contract could go negative - there really is no reason a contract should go negative. This is unprecedented.
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I think TWS and the back end could handle negative prices. It would seem the boolean flag had not been enabled for the oil contracts.

No software update was required in TWS to handle negative prices the next day.
 
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southall said:
Why CME didnt have a circuit breaker at 0 is beyond me.
Stopped trading for the rest of the day if it wasnt the last trading day.
So buyers who were able to take delivery could have come in and bought. You had guys like Carl Ichan who wanted to buy and take delivery.
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Cme did their part in the sense send the notification but they did it so
Soon to expiration and so silently
Showing they do NOT give a
Fuck about the brokers that bring them business because some
Couldve gone out of business

were talking cme/broker relation now not even talking about the customers
 
DarthSidious said:
Also, do note that IB calculates (or used to) margin thusly:
margin = min(whatever they decide, current price * multiplier)

Accordingly, our Mr. Shah, who just couldn't resist buying 212 contracts, was charged margin at $30 a pop :D. I am sure Mr. Shah didn't think for a moment how the fuck his $77k account is carrying 212 CL contracts rofl :rolleyes:
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IB - major screw up
Mr. Shah - major dope
 
southall said:
No he was smart. If prices had rallied he would have made a killing.

If prices went down he could of sued IB for extending him that much margin and never had to pay the losses.
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Yes, that's how it turned out. Did he calculate that? No way...
 
southall said:
No he was smart. If prices had rallied he would have made a killing.

If prices went down he could of sued IB for extending him so much margin and never had to pay the losses.
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smart??

Your comment illustrates the lack of character you have
 
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