RISKS ASSOCIATED WITH SYSTEM FAILURE: Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. System or component failure may also result in loss of orders or order priority. In this regard, Customer must maintain alternative trading arrangements in addition to Customer's IB account in the event that the IB system is unavailable for any reason.
IB shutdown - How did they solve your loss
- Thread starter I$land
- Start date
The thread about fat ugly traders is:
- funnier
- more relevant
- more useful
- funnier
- more relevant
- more useful
One of the reasons IB might compensate would be as follows:
a) You place an order and it is held on the IB server. It cannot be placed on an exchange as it is not a type handled by the exchange.
b) You experience a major failure. IB feeds to you are not working. IB does not answer the phone. You have no clue as to whether it is just IB's external servers to its customers (both the datafeed and the trading feed) or everything including their feed to the exchanges.
c) You learn by some other means that your order should have gone off.
d) You use your backup broker (REFCO) to hedge your position.
e) IB comes up and you find that your order has not been executed by IB because of a major failure.
f) As soon as IB is back up and you find out you are not truly hedged you close the position at your backup broker and take a loss.
IB might be willing to compensate you. You've exercised risk management as they stated. Nebulous I grant, but based on most of the threads about problems with IB's software and/or hardware (except for the real ranters who were not compensated because they basically did not know what they were doing) IB seems to "do the right thing."
Jack
a) You place an order and it is held on the IB server. It cannot be placed on an exchange as it is not a type handled by the exchange.
b) You experience a major failure. IB feeds to you are not working. IB does not answer the phone. You have no clue as to whether it is just IB's external servers to its customers (both the datafeed and the trading feed) or everything including their feed to the exchanges.
c) You learn by some other means that your order should have gone off.
d) You use your backup broker (REFCO) to hedge your position.
e) IB comes up and you find that your order has not been executed by IB because of a major failure.
f) As soon as IB is back up and you find out you are not truly hedged you close the position at your backup broker and take a loss.
IB might be willing to compensate you. You've exercised risk management as they stated. Nebulous I grant, but based on most of the threads about problems with IB's software and/or hardware (except for the real ranters who were not compensated because they basically did not know what they were doing) IB seems to "do the right thing."
Jack
Good point.
In fact I highly doubt the OP expects IB to compensate. I doubt it because he knows full well that they state explicitly that they will not compensate for losses due to tech failures. To hope or even ask if they will compensate for potential gains missed because of tech failures is a joke.
The OP is just trying to make the point that he wishes they would compensate.
Wayne - Thanks for the info.
RL - Point taken. I'll make sure to choose a better title next time
kiwi_trader - Thank you sooooo much for that.
DH - Give money back... Are you serious ?
JackR - I send my stop & my target with my order (braket order) so I expect them to be executed no matter what happens on IB's side. This is their responsibility so they should compensate if because of system failure (or any other reason) my stop or profit target was not executed.
traderNik - In my opinion, it's not because they say they are not responsible that they are not actually responsible. Seriously, a world-wide system failure just does not happen like this. There had to be major negligence !
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It would also be nice to hear about people with different brokers and their policies in the event of a system failure.
RL - Point taken. I'll make sure to choose a better title next time
kiwi_trader - Thank you sooooo much for that.
DH - Give money back... Are you serious ?
JackR - I send my stop & my target with my order (braket order) so I expect them to be executed no matter what happens on IB's side. This is their responsibility so they should compensate if because of system failure (or any other reason) my stop or profit target was not executed.
traderNik - In my opinion, it's not because they say they are not responsible that they are not actually responsible. Seriously, a world-wide system failure just does not happen like this. There had to be major negligence !
--
It would also be nice to hear about people with different brokers and their policies in the event of a system failure.
Sorry to keep on this point, but the above actually doesn't make any sense.
1. You know beforehand that IB is not responsible for losses that result from technical failures on their part. This means that it doesn't matter about whether you sent your stop and your target order. They are not responsible, legally speaking (which is what you're talking about). So you already know that whether or not you sent stops and targets, and whether or not those stops and targets are held natively or on IB servers, they are 100% not responsible, according to the contract you signed.
2. What they say or don't day is irrelevant. You signed a document which absolved them of any responsibility. That's why they're not responsible, not because of what they're 'saying' or 'not saying'.
Sorry, but I just don't get it. If I lost money as a result of a technical glitch I would be really mad, and I would ask them to compensate me, but I would expect the answer to be no, and I sure as hell wouldn't ask on here why they're not compensating me, because I would already know why they're not compensating me. Because I agreed that they're not responsible. Just like you did.
Adding to the responsibility for losses issue.
You have to be joking. You pay someone a couple of bucks per trade (of which a small proportion is profit) and then expect them to carry the financial risks if something goes wrong? Have you tried to get your ISP to pay for your trading losses while the internet is down? Your phone provider when the phone lines are out? The airline for the business deal you fucked up by not getting there on time?
Get real. If a service is provided at low cost the sp will not be held to the risks on the high value things you do across the low value conduit.
IF you want to get it right then:
1. Get multiple redundant paths to the exchange (perhaps you should move closer as well). That's multiple physical connections to separate telcos who share no infrastructure to brokers who share no infrastructure.
2. Hold NO orders on anyone else's servers (because you don't know if they filled/will fill or not and can't find out quickly when it matters)
3. Have hedging strategies in place in case the exchanges fail.
LOL. You might want to ask an insurance company if they'll cover you while you're at it.
Otherwise stop whinging like a little girl and get on with taking some responsibility for your results in 2008.
Re "there had to be major negligence." Not only are you ignorant and stupid ---- you are a complete wanker with it. A whinging little girl and a wanker as well ... its an ugly ugly thought.
You have to be joking. You pay someone a couple of bucks per trade (of which a small proportion is profit) and then expect them to carry the financial risks if something goes wrong? Have you tried to get your ISP to pay for your trading losses while the internet is down? Your phone provider when the phone lines are out? The airline for the business deal you fucked up by not getting there on time?
Get real. If a service is provided at low cost the sp will not be held to the risks on the high value things you do across the low value conduit.
IF you want to get it right then:
1. Get multiple redundant paths to the exchange (perhaps you should move closer as well). That's multiple physical connections to separate telcos who share no infrastructure to brokers who share no infrastructure.
2. Hold NO orders on anyone else's servers (because you don't know if they filled/will fill or not and can't find out quickly when it matters)
3. Have hedging strategies in place in case the exchanges fail.
LOL. You might want to ask an insurance company if they'll cover you while you're at it.
Otherwise stop whinging like a little girl and get on with taking some responsibility for your results in 2008.
Re "there had to be major negligence." Not only are you ignorant and stupid ---- you are a complete wanker with it. A whinging little girl and a wanker as well ... its an ugly ugly thought.