IB customers lose $88m trading WTI crude

maxinger said:
so now they have to change LOW LIMIT to

NO LIMIT OR NEGATIVE INFINITY.
More...

BINGO. By removing the limit column, that is effectively what they did. If they do not have hi/low limits, why have a limit column. So breakers on energy products are gone by inference. (They already had infinity up, but a penny limit down breaker). Now, nada.
 
Super Mega Day Trader Award
goes to

Syed Shah, 30 years old day trader for trading

- very hugh quantity of > 200 crude oil contracts

- on the very last day of Expiring Contract

- against the down trend & not knowing counter trend vs reversal

and attempting to receive millions of barrels of physical crude oil

upload_2020-5-9_10-27-25.jpeg
 
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Hey there,
Thought I would write that it's finally settled for me (and for the most of the people suffered)
IB did it the way mr.Petterfy anounced as it was written in the article posted before.

Very grateful for the support here (even though it took a while to get some trust:) )

Happy trading!
 
I haven't checked up on this story for a while, but holy cow, they're basically sorta making their customers whole by capping the price of negative crude at $0 for those who held the losing hand?

Basically everyone wrapped up in this sustains a smaller finite loss thus leaving basically most people with still positive equity in their accounts and IB itself taking the brunt of the hit? Daym, those guys lucked out big time. It's like a bail out package. Hopefully no moral hazard though.

The one day trader covered by the news who once owed $9M margin call on his $77K account will basically still have ~$70K after all is said and done more or less? From being long hundreds of contracts of crude that he averaged down as price fell and eventually acquired such a large position size that he also eventually knew was abnormally large for his smaller account? Wow. When was the last time a guy with sub $100K traded hundreds of oil futures contracts? So its not even that bad of a hit to his account now. The turn of events is like winning the lottery.

I was wondering, will trading access be affected in any way for some of those customers who got a new lease on life based on the way they have traded?
 
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beefcaketrade said:
I haven't checked up on this story for a while, but holy cow, they're basically sorta making their customers whole by capping the price of negative crude at $0 for those who held the losing hand?

Basically everyone wrapped up in this sustains a smaller finite loss thus leaving basically most people with still positive equity in their accounts and IB itself taking the brunt of the hit? Daym, those guys lucked out big time. It's like a bail out package. Hopefully no moral hazard though.

The one day trader covered by the news who once owed $9M margin call on his $77K account will basically still have ~$70K after all is said and done more or less? From being long hundreds of contracts of crude that he averaged down as price fell and eventually acquired such a large position size that he also eventually knew was abnormally large for his smaller account? Wow. When was the last time a guy with sub $100K traded hundreds of oil futures contracts? So its not even that bad of a hit to his account now. The turn of events is like winning the lottery.

I was wondering, will trading access be affected in any way for some of those customers who got a new lease on life based on the way they have traded?
More...

The guy still blew out his account, so don't be too happy for him.
 
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