Screwed by IB? "Tough luck dude"

[lachie74]

Quote from ProfitTakgFool:

That's exactly what you need to do. Walk away and come back a year from now and tell your friends the story. I suffered a devastating loss like this a few years ago and I get a good laugh about it now. You'll come back a much stronger trader having been through this experience.

My devastating loss was based on 10% inexperience and 90% stupidity. The good news is both were pretty easy to fix. The sweetest form of revenge is recoverng your trading losses through solid trading. Good luck!

Thanks, I appreciate the kind words.

 

[tyrant]

Quote from lachie74:

I fully admit my idiocy in the first place caused this. But I don't think asking for an explanation how a 4 lot order got executed when my account was busted or why I was given incorrect information on the phone is asking too much.

I am also interested in knowing why a market order went through but not a limit order?

And, had you not bought the 4 new contracts, what would happen with the original short 4 contracts? Did wheat open limit up with no chance of buying back at all in the first place?

 

[MandelbrotSet]

Quote from tyrant:

I am also interested in knowing why a market order went through but not a limit order?

And, had you not bought the 4 new contracts, what would happen with the original short 4 contracts? Did wheat open limit up with no chance of buying back at all in the first place?

The market would have had to have traded back down to the Limit Order (and through it) to be filled, whereas the Market Order could be filled any time (and legally, at any price the market would bear).

As far as where he sold short, I think a picture is worth a thousand (useless) words.

 

[FanOfFridays]

Quote from Tums:

This is NOT a fair statement.

Go on. What's unfair about it?

 

[kiwi_trader]

Lachie,

You were not "screwed by IB" but by your own inexperience.

Good to see that you accept that --- as its the first step to actually getting on with life and ultimately becoming a capable trader.

Repeat after me: Damn, my own fault, well I know now --- I will do better next time.

Take a break and build a strategy. Back test it. Forward test it (paper trade). Then quietly make some bucks. Good luck.

 

[One]

1. It sounds like you are assuming the two contacts came off limit bid at the same time, and that you would have been able to buy back your short and sell July both near the limit bid, which is unlikely.

When the market opened you were really under water more than 18K, and you effectively took that larger loss when you bought July and entered a calender spread - which are risky enough in their own right in this market. This should make you feel better, since you would have taken a larger loss based on what you would have had to pay at the open to cover you short if limits had not been in place.

2. I can understand why IB would allow you to open July: they want to lower your margin deficit and I assume entering a calendar spread will do so.

 

[Robert Weinstein]

never ever ever ever ever allow your account to face a margin call with IB

I have read countless horor stories and have in the past experienced one or two myself.

You WILL lose money and it wont be pretty and you will lose control of your account until IB is happy again.

when it comes to maximizing leverage with IB JUST SAY NO !!!!!

 

[OldTrader]

Quote from traderNik:

Go on. What's unfair about it?

Here was your statement:

they will do whatever they can to make money off your mistakes. ...

As the story went, when wheat opened up, this guy's account went deficit. Now what part of that would you call "making money off your mistakes"?

I think the fact that at this point this guy is deficit, IB is losing money in return for their commission of a few dollars gives them the right to do what they need to to mitigate their own risk, don't you? If that causes this guy to lose a little more than he might of had he LEGGED out of a spread, tough shit is the way I see it.

What was "unfair" about your statement? I would have said what was "fair" about your statement.

OldTrader

 

[donnap]

Quote from MandelbrotSet:



Hmmm, you're right, I'd say he has a very good case, I think you should plead it with him.

No thank you.

 

[regal_2012]

I bet any1 here the starter of this thread did not read all of the fine print when filling out his app.he probably just scrolled down and signed his name- like most people do.

never thought he would have an issue.

thats why IB is ignoring him.Its not worth their time because he has no case.

just like the thread a while back when a guy wanted to sell 10, but typed in 100 instead.he didnt have enough margin for that kind of trade in the first place, but the sysem took it anyway and he blew his account.

well, tough luck.You are responsible not IB.

read the fine print.