Margin debt negotiations

FortNox said:
Does anyone have experience negotiating margin debt. On Monday I lost 175k due to massive margin call. This left me with 25k negative balance owed to my broker.

If anyone has been thru this situation before advice would truly be appreciated.
My acount was with interactive brokers.
Thanks
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u have a negative balance of $25K which means your broker wants $25K exact. If u want to negiotate, then go through arbitration. Otherwise, tsk tsk tsk....collection call


More than 90% of small traders lose! They just lose!
 
emg we need an "emg special" flowchart on IB autoliquidation.

I have to say, as an IB customer (since circa 2001ish), it is one of few things (IRS being another) that occasionally keeps me awake at night.

The good news is, it surely makes one think twice about significant leverage and/or illiquid positions...

emg said:
u have a negative balance of $25K which means your broker wants $25K exact. If u want to negiotate, then go through arbitration. Otherwise, tsk tsk tsk....collection call


More than 90% of small traders lose! They just lose!
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FortNox said:
First off thank you to everyone who have replied so far I really appreciate all the responses. In the past I had contacted ib about their margin calculation and unfortunately they wouldn't provide the equation which always made it hard for me to gauge the margin swings when the market moved against me.
I completely understand brokers need to protect themselves and think it's good they have systems in place for that. With that said I think ibs automated system needs to be reviewed. I have called them in the past when I have been margin called before begging them to have a human review my positions and they always refuse. It's ridiculous. I hope people read this thread as a cautionary tale and realize what ever flexibility they offer can quickly dry up. I just want this thread to stay Positive and be useful to people in the future. When I contacted ib in regards to my margin deficit I was referred to compliance. Where the individual was quite rude although I am quite willing to repay. But I have to liquidate assets to do so. They did mention a possible payment plan short term of course. But an overall unwillingness to provide concrete information. I will provide updates as they come.
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Looks like you have case law on your side. Contact the lawyers on the listed case.

DO NOT give up and negotiate until all other avenues are exhausted. Good luck! Surf
 
Everyone who speaks of using different brokers, please do mention what you're using so that the advice is actually helpful.
 
Using SocGen now.

If I were new and looking I'd try Wedbush. Probably the best second tier broker out there as of recently.
 
Handle123 said:
I use IB as second backup broker for various reasons, cheap commissions is seldom ever cheap as they have gotten so enormous through the years, they have no wiggle room like a smaller broker does wanting to keep you as a customer, IB doesn't care whether you there or not. The answer is simple, liquate holdings and make them happy, they have enough legal to make you know you did wrong. Should have lighten the load Friday before or taken insurance to offset risk, but you rolled the dice? You already knew about IB beforehand, so you really have no complaints. Am sure if they owed you, would you agree to payment plan?
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Totally agree. We small firms do really care about our customs. We provide high-level supports and ideal setups. Meanwhile, comparing with big firms, our commission and payout are usually much more satisfying.
 
d08 said:
Everyone who speaks of using different brokers, please do mention what you're using so that the advice is actually helpful.
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Stocks & options....................Futures
Lightspeed.....................Velocity(lease seat)
Optionshouse...................Deep Discount
IB....(use as back up)...............IB (Backup)

I don't make recommendations of brokers, but they work with me, commissions might be lower for stocks/options elsewhere, but I like the service. HINT* before they have your money, you get best prices to can and have them send you an email and signed by someone, otherwise you never know what you end up getting. If they have some fee you don't like, asked them to waiver it.
 
d08 said:
Everyone who speaks of using different brokers, please do mention what you're using so that the advice is actually helpful.
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I have my money with ADMIS. They are traditionally a commercial ags firm but they work with a few IBs who provide a route in for retail. Solid company financially and quick to respond to any issues.
 
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