IB autoliqidating defined risk position

Horrible. This is the main reason I will not open an account at IB. At Think or Swim/TD if a bad mark on your butterfly put your account in debit, it would not be auto liquidated, but reviewed by a person. If a liquidation is necessary, they would enter the trade as a spread and your loss would be minimal.

Did IB liquidate each leg separately?
 
unfortunately, I don't think TD would liquid as a spread. We look at them as spreads, but the system just see positions in a PM account. In a reg-T account, their are algos that pair off positions to optimize reg-T margin. PM does not work that way.
 
FSU said:
Horrible. This is the main reason I will not open an account at IB. At Think or Swim/TD if a bad mark on your butterfly put your account in debit, it would not be auto liquidated, but reviewed by a person. If a liquidation is necessary, they would enter the trade as a spread and your loss would be minimal.

Did IB liquidate each leg separately?
More...

Yes they basically liquidated the short put of the fly in small lots, causing huge realized losses in the account. Everytime I had to balance the fly manually.

I finally closed the fly for a nice 13K profit on the 36 surviving contracts (I downgraded the account to Reg-T that same day). But the loss from the other contracts was about 10K. What a waste of time.
 
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