PUT options liquidated at worst possible prices

Quote from somedudetrader:

IBj has finally given some answers which I have been asking. It seems like liquidation was somehow triggered by my cash kept in Canadian dollars. This was never confirmed by anyone else before, and I'm glad IBj has stepped in to clarify. I'm surprised that my cash kept in Canadian has actually triggered liquidation and not at all because of the wide spread of the option positions, so I will be waiting for IB to come up with the exact math on that. I'm sure international traders would be interested.

As I mentioned before, I am Canadian and keep my cash in Canadian dollars. On the day of liquidation these were my positions, also as mentioned:

- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)

Whoever is knowledgeable on the IB platform could tell that the FX position would be hidden by default, thus I mentioned that only after some digging. My Canadian cash is not a position thus does not show up in the Portfolio page nor the FX Portfolio.

Now that IBj has came out and basically confirmed that IB did liquidate at the ridiculous prices as mentioned, there should be no question in the validaty of the liquidation prices. What if the spread at the time was 0.01 and 9999? I personally would like the answer to that as the prices executed were ridiculous any way you see it. I will let you guys know what type of resolution will be taken by IB as soon as I get it. As of yet, the only concrete response from IB I got so far was the one we all see from IBj.
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CAD (as your un-leveraged long base currency) didn't move enough to cause a USD-based product liquidation, and your leveraged-long USDCAD would've have covered any CAD base-currency exposure.

What is "small amount" of long USDCAD? 100k units, perhaps?

Edit: I don't think you're comprehending the impact of your leverage. Thanks for posting the liq notice, unfortunately, it doesn't tell us much. There are TWS bulletins that precede the liq-notice that would mention the trade that caused the liquidation.

You blotted-out the account number, so I can't understand why you're concerned with account safety. Perhaps a public thread isn't best-practice if you're that paranoid.

Absolutely my last request... did you go long USDCAD last Thursday, and if so, was it between 2:30 and 2:50 pm EDT?
 
Quote from zdreg:

one more day and your broker may have been in liquidation.ever trade futures limit down everyday. maybe not exactly comparable but close enough. I would not want to deal with your broker.care to name him?
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happy to...thinkorswim...I have a couple of accounts and have several options..I don't trade on a shoestring and I do manage risk. The whole problem is on occasion shit happens...but very briefly as we all found out..some kind of hanky panky and I just don't believe the small retail trader should have to pay.
 
Quote from RichardRimes:

happy to...thinkorswim...I have a couple of accounts and have several options..I don't trade on a shoestring and I do manage risk. The whole problem is on occasion shit happens...but very briefly as we all found out..some kind of hanky panky and I just don't believe the small retail trader should have to pay.
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oh one more thing...back in 08 when major shit happened I did get caught. They called and talked with me and we worked thru my positions to get back on track. Again ....all I'm against is this auto liquidation. Brokers have a responsibility to manage risk...absolutely...but it should not be left to a computer. Only if the broker can not talk with the client at last gasp then take it down. But then thats the price you pay for cheap options/futures commish at IB I guess.
 
"
- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)
"

should read like this

positions:

- TINY x amount of June 119 SPY puts
- TINY x amount of June 114 SPY short puts
- TINY y amount of May 40 USO puts
- TINY y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- NEGLIGIBLE AMOUNT OF cash (Canadian)
- SOMETHING ELSE , eh , MAYBE, I NEED TO OVERLOOK ...

My thought is :

After liquidation, the account is so tiny, it is not a huge
concern to reveal the whole damn thing at all, unless
there is something to hide. After all, the account will
be shut down one way or the other, so no one will
bother to hack into this tiny account in a short time.
 
Ding Ding, the court (market) is open.

The plaintiff (some dude): He cut off my legs during May 6 chaos :mad:

The defendant (IB): He set my house on fire first :mad:

The judge (ET): You are all found guilty :p :p :p
 
I want to apologize to the OP for my being too quick to accuse him of lying. I accused him of lying, because I was angry about all the abuse I had taken for correctly diagnosing the trigger for his liquidation, and also because I couldn't believe a guy trading options at IB would honestly be as stupid as his presentation indicates. But on further consideration, I wonder if perhaps he honestly really is that stupid. If he honestly really is that stupid, then I owe him an apology.
 
Quote from jimrockford:
"all the abuse I had taken ".........................I wonder if perhaps he honestly really is that stupid. If he honestly really is that stupid, then I owe him an apology. [/B]
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................. crying about abuse while dishin it out ...............,u and wang,..will the real dumbfu...please step forward
 
Quote from patrick_h_wang:

"
- x amount of June 119 SPY puts
- x amount of June 114 SPY short puts
- y amount of May 40 USO puts
- y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- cash (Canadian)
"

should read like this

positions:

- TINY x amount of June 119 SPY puts
- TINY x amount of June 114 SPY short puts
- TINY y amount of May 40 USO puts
- TINY y amount of May 37 USO short puts
- small amount of short FX position in CAD/USD
- NEGLIGIBLE AMOUNT OF cash (Canadian)
- SOMETHING ELSE , eh , MAYBE, I NEED TO OVERLOOK ...

My thought is :

After liquidation, the account is so tiny, it is not a huge
concern to reveal the whole damn thing at all, unless
there is something to hide. After all, the account will
be shut down one way or the other, so no one will
bother to hack into this tiny account in a short time.
More...

Why are u so mean to a person is kind enough to warn about what some brokers may do. I closed my IB margin account and move to Thinkorswim partly due the dumb bots in volatile markets.

There was absolutely no reason for IB bots to do what it did.
 
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