Interactive Broker negative account balance EUR/CHF customer group...

I'mNobody posted a similar chart from Dukaskopy with the volume on a different thread. I first thought it was in thousands and hence the market was dead but it seems to be in millions. Check it out, I'm curious to read comments about this, I was long RF (EURCHF) futures and they were dead once i noticed the mess, several minutes after the floor broke.
BTW IB didn't liquidate and it was very difficult to exit the trade (or at least in my case to hedge the future position in the spot market as the market was moving fast and TWS wouldn't let the orders go through (there is a separate thread about this - I didn't lose enough to become margin deficient but with the CHF below 0.90 I felt quite a bit worried)
 
jamelliott said:
There was plenty of time to force a liquidation upon maintenance margin violation. The move from 1.20 to 1.10 took roughly 5 minutes, during which time my, and many other accounts would have been negative. If the auto liquidate risk management algo works in real time and is indeed automatic, the worst possible outcome withing that first five minutes would have be a liquidation at the low around 1.0550. If accounts were liquidated within the first few minutes, the worst possible liquidation would have been around 1.10. I would expect any advertised real time and automatic risk management algorithm to act in real time, and automatically. The worst case scenario liquidation within the first five minutes after the move would have saved tens of thousands of dollars. IB liquidating all it's negative excess liquidity accounts would have had a nominal effect on the plunging EUR/CHF given global selling volumes at that time.

And no, Loyek590, you as a client of IB are not bailing out any clients with negative accounts. If you are actually a client of IB, then the $120M hit that IB took with it's exposure to negative client accounts (which represents less than 3% of IB's capital), would come out of corporate profits. However, I'm assuming that they will indeed recover a significant portion of this number. As someone who lost a sizable piece of their net worth, which I accept and risked upon the assumption of this risk, am not worried about a couple basis points of corporate profits for the sake of accepting some customer service rep's excuse that they decided not to be protecting themselves or their clients at that particular time.
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The CEO made it clear in his IB post SNB Bomb that they chose not to auto liquidate because it was to fast for them. What ever that means. I advise those with a significant negative balance to do nothing but hire an lawyer with securities expertise and consider filing a complaint with IB on there web site and ask the neg. balance be removed. Consider a FINRA complaint also. To collect they must get a judgment and that only by going to arbitration which you may or may not choose to fight with them in. If you lose by not showing up or in the arbitration they will get a ruling to take to a judge who will give them a money judgment. Then you will owe them the money. From there again you need a lawyer to protect yourself. Good luck.
 
1. "IB chose not to auto liquidate because it was too fast ?" lol :) that means IB spent time to decide whether to auto liquidate or not? Based on which facts did they decide not to do it?
Auto liquidation is a real time algo, not a press button process

2. I know people who were auto liquidated and I know some who were not...how can you explain that?
 
d08 said:
If you studied IB's liquidation procedures, you'd know that after reaching forced liquidation levels in your account, IB gives you 10 minutes to rectify the situation. I for one like and appreciate that they do this. Immediate liquidation would be a disaster for many accounts.
Traders have no-one to blame but themselves in this freak move.
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10 minutes? why not 2 days or 1 year?

Great idea...car manufacturers should do the same with airbags...wait some time to make sure car has REALLY CRASHED
 
Snbmess said:
10 minutes? why not 2 days or 1 year?

Great idea...car manufacturers should do the same with airbags...wait some time to make sure car has REALLY CRASHED
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Not comparable. I often briefly violate margin only to return to positive territory minutes later.
As a trader, it's your responsibility to monitor your trading.
 
d08 said:
Not comparable. I often briefly violate margin only to return to positive territory minutes later.
As a trader, it's your responsibility to monitor your trading.
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How do you know you will return to positive territory?
 
Snbmess said:
How do you know you will return to positive territory?
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I don't but at least I'd have a choice in WHAT I want to liquidate. Not everyone is trading one currency pair. I have a preference of what I want liquidated first and doing it myself offers more control than "liquidate last".
 
d08 said:
I don't but at least I'd have a choice in WHAT I want to liquidate. Not everyone is trading one currency pair. I have a preference of what I want liquidated first and doing it myself offers more control than "liquidate last".
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You said you always end up in positive territory...now you are saying it's not true:) as you seem to know where market goes, I am surprised that you often violate margin...is it kind of HOBBY you have?
 
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