IB customers lose $88m trading WTI crude

[creator]

CME has been sending out their "Advisory Notices" since April 3 regarding negative prices. I highly doubt a reputable firm like IB would have overlooked them.

https://www.cmegroup.com/notices/electronic-trading/2020/04/20200403.html#pageNumber=1


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I tried all types of orders on web and iOS app, it didn’t allow to input “-“ sign

 

[schizo]

Big firms are slow to do stuff most times.

Besides IB losses were on WTI and not CL. So im not sure if negative prices was the issue.

You gotta be kidding me. If what you say is true, would you want to trust your hard-earned money with these slow firms?

BTW WTI is CL.


Man, do most of you even trade the crude oil futures? If not, STFU.

 

[BAT31]

People don't call crude the widow maker, for nothing. I learned my lesson trading crude, as a newbie, three years ago. I still have nightmares about my losses. 30% of my account vanished in 15 minutes, and that was with a crude calendar spread.

 

[southall]

BTW WTI is CL.


Man, do most of you even trade the crude oil futures? If not, STFU.

WTI contract trades on IPE/ICE

CL on CME

If you dont even know the difference maybe its you who should STFU

Do YOU even trade crude oil futures?

 

[maxinger]

please don't use that as an excuse to increase margin requirement.

for goodness sake, reduce margin requirement immediately.
we disciplined traders don't over trade.

 

[southall]

please don't use that as an excuse to increase margin requirement.

for goodness sake, reduce margin requirement immediately.
we disciplined traders don't over trade.

IB seem to have lost faith in their 'auto liquidator'
Seems they can no longer accurately track client risk in real time throughout the day
So they resort to increasing intraday margin to compensate.

 

[eastern_warrior]

IB seem to have lost faith in their 'auto liquidator'
Seems they can no longer track client risk in real time throughout the day
So they resort to increasing intraday margin to compensate.

You need liquidity to liquidate, don't you?

 

[maxinger]

IB seem to have lost faith in their 'auto liquidator'
Seems they can no longer accurately track client risk in real time throughout the day
So they resort to increasing intraday margin to compensate.

luckily I have multiple accounts.
I haven't use IB for weeks already

 

[southall]

You need liquidity to liquidate, don't you?

Why not increase margin for WTI vs CL if its not as liquid.

 

[Overnight]

Why not increase margin for WTI vs CL if its not as liquid.

Margins should not change due to a measure of an instrument's liquidity. It should change based on it's crazy-ass volatility. Or lack there-of, in the case of margins going down, heh.