I don't want to change the "spirt" of your paragraph and/or post. Frankly though, I don't think I did. Rather, we simply disagree. Read on.
It may be true that an account holder will benefit from a liquidation. However, that is different than saying that the policy is "for the account holders benefit". So you see, we completely disagree. I feel confident that when IB discusses their liquidation policy in a board meeting or management meeting, there concern is to maintain accounts in a manner that reduces risk to IB. Period.
Further, perhaps you are privy to some type of order of liquidation. I'm not. I have carefully read the documents made available to me, and see absolutely nothing regarding an "order". Now, I'm not saying there isn't one. But if there is, what I'm saying is that they have not publicly disclosed it as far as I know. If you can provide a link to this "order of liquidation", I'd like to see it.
So the point is that if IB has not disclosed this order, then when you come along and claim they didn't adhere to an order, I think you're mistaken. Again, provide a link to this order and it will clear up this aspect of our disagreement.
My belief, for the moment at least, is that IB simply starts selling. I think it is done automatically, with no attention paid to other instructions like "do not sell", etc etc.
Always possible I'm mistaken. But if I am, it's because I have not seen these policies in writing, not intentional.
I don't think it's the traders "fault" if IB's server goes down, TWS goes pink, can't long in, etc etc etc. However, I do think it's the traders responsibility. That is established by all the paperwork that I signed. Now, you are an introducing broker evidently, and I don't what you signed. So again, I only respond based on what IB has on their website, and in their paperwork for individual traders. And there, the policy is clear. Further, they clearly suggest making alternative arrangements to cope with technical difficulties that could come up. I have done this in a variety of ways. Perhaps as an introducing broker you don't mitigate some of these types of risks. But certainly a trader should. That's a simple reality.
There's nothing in there paperwork that I'm aware of that makes a liquidation a requirement. Provide a link to it if it exists.
This I agree with. I haven't had many issues, but certainly some. And some of those were costly. Globex went down for instance. A server went down once. Each of these taught me something about controlling my risk. It's well worth the thought and planning to put into place some type of system to handle various contingencies that could come up. I've tried to do this, but certainly it is one of the risks involving electronic trading. For that matter, back in the old days I had my phone go out a couple of times, and couldn't make a trade. In those days I had nothing to protect me. I think the electronic trading has been easier to protect against problems.
Hopefully I've discussed the points you've made without changing their "meaning". If anything is changed it was unintentional.
OldTrader
) Actually he might not be awake yet so it would be unfair to expect an instant reply.