IB spike my margin requirements erroneously - what remedies do I have?

T

tonyf

Sold loads of an OTM short dated put naked with a strike of $0.05 last week.
Fair market value was $0.01 yesterday and 500 contracts traded at that level.
IB marked a "last price" of $0.55 overnight, spiking my margin requirements for no reason.
I can see no trades in the lit market at that level whatsoever, the underlying has barely moved.

where is IB sourcing those widely wrong prices from? how common is that problem and what remedies do we have?
 
tonyf said:
Sold loads of an OTM short dated put naked with a strike of $0.05 last week.
Fair market value was $0.01 yesterday and 500 contracts traded at that level.
IB marked a "last price" of $0.55 overnight, spiking my margin requirements for no reason.
I can see no trades in the lit market at that level whatsoever, the underlying has barely moved.

where is IB sourcing those widely wrong prices from? how common is that problem and what remedies do we have?
More...
%%
WIDE bid \asks are tricky;
my broker 'scomputer wrongly told me today my ''price was too far away''+ smaller bid ask than that ...'''
Same crazy message last year!!!!! Turned out they were right; i meant GTC order + accidently put it in day order.
Molly Wood said ''crazy stock market '' Have no idea what she meant;probably penny stock market or GME junk??Sounds like thats an ask price with no[0] bid /but check with them
 
horizon said:
You need to use another account to place a new sell order to bring that AI manipulated price back to $0.05
More...
You don't even need another account. In my past experience before leaving IB I could just put in a limit order that was far enough away from market that it would never get hit and "The Algorithm" would index off that. Easier to do on a vertical spread which is what I mainly trade, but probably doable with a letter order of some sort for the OP.

Note that the real solution is to get a different broker if you're going to trade options or deal with IB screwing you over with this kind of stupidity repeatedly and with no recourse. They're great for vanilla stock trading, but start doing anything with options or FOPs and you run into exactly this kind of thing all the time.
 
Sig said:
You don't even need another account. In my past experience before leaving IB I could just put in a limit order that was far enough away from market that it would never get hit and "The Algorithm" would index off that. Easier to do on a vertical spread which is what I mainly trade, but probably doable with a letter order of some sort for the OP.

Note that the real solution is to get a different broker if you're going to trade options or deal with IB screwing you over with this kind of stupidity repeatedly and with no recourse. They're great for vanilla stock trading, but start doing anything with options or FOPs and you run into exactly this kind of thing all the time.
More...

Who do you trade with now?
 
tonyf said:
Who do you trade with now?
More...
Dash clearing with Apex. They have yet to make a margin mistake of any type, and more importantly when there's an issue I have a specific representative who was assigned to me who answers my call or returns my email within minutes to fix it. As a plus, he actually knows something about the securities industry and assumes the issue is on their side until proven otherwise. Very much the opposite of the bottom of the barrel they hire at IB who assumes the customer is always wrong until proven otherwise and for whom the issue we are discussing would be so far over their head the wouldn't even be able to grasp what the actual issue was. Thereby making it the customer's fault by default.
 
Sig said:
Dash clearing with Apex. They have yet to make a margin mistake of any type, and more importantly when there's an issue I have a specific representative who was assigned to me who answers my call or returns my email within minutes to fix it. As a plus, he actually knows something about the securities industry and assumes the issue is on their side until proven otherwise. Very much the opposite of the bottom of the barrel they hire at IB who assumes the customer is always wrong until proven otherwise and for whom the issue we are discussing would be so far over their head the wouldn't even be able to grasp what the actual issue was. Thereby making it the customer's fault by default.
More...
Dashprime? if so, is your account segregated or pooled? do you know how your monies/assets are treated if they go under?
 
tonyf said:
Dashprime? if so, is your account segregated or pooled? do you know how your monies/assets are treated if they go under?
More...
Money is held at Apex. I am one of those paranoid people who buys a Treasury in my name with my funds, then take a haircut off that to trade. So if they go under I get my Treasury back within probably a few weeks and send it to another broker or a bank.
 
You must log in or register to reply here.
Back
Top