This is how bad the IB Margin calculator and Support are

Thanks for the reply.

Details:
AMZN Jun 23 weekly call option:
Placed for a limit order sale for 10.70
Executed at 9:31AM (Jun 19) EST for 10.70.

At 10:21AM EST they cancelled my trade and put back those options that were sold 50 minutes back.
The options were now trading around $7 vs $10.70 they got executed at open.

They said that the buyer had $9.70 bid and it erroniousely executed my trade for $10.70. Buyer challenged and based on exchange rules they cancelled my trades!!!!!!!!

I am speechless since I lost thousands on this one trade after selling, without my fault.
 
vizzy75 said:
Thanks for the reply.

Details:
AMZN Jun 23 weekly call option:
Placed for a limit order sale for 10.70
Executed at 9:31AM (Jun 19) EST for 10.70.

At 10:21AM EST they cancelled my trade and put back those options that were sold 50 minutes back.
The options were now trading around $7 vs $10.70 they got executed at open.

They said that the buyer had $9.70 bid and it erroniousely executed my trade for $10.70. Buyer challenged and based on exchange rules they cancelled my trades!!!!!!!!

I am speechless since I lost thousands on this one trade after selling, without my fault.
More...

I do not trade options, but in equities there is always a defined threshold in what constitutes a "bustable" transaction. You need to read up on the exchange rules to figure out why this transaction was even allowed to be busted. And in the future, when you receive a really nice fill, you can't assume that it will stand until a certain amount of time passes without the trade being busted.

Complicating all of this is when the exchange arbitrarily determines which trades are busted and which are not after the fact (i.e., the flash crash). You basically have no idea whether trades will stand sometimes when stuff gets extremely volatile.
 
vizzy75 said:
Thanks for the reply.

Details:
AMZN Jun 23 weekly call option:
Placed for a limit order sale for 10.70
Executed at 9:31AM (Jun 19) EST for 10.70.

At 10:21AM EST they cancelled my trade and put back those options that were sold 50 minutes back.
The options were now trading around $7 vs $10.70 they got executed at open.

They said that the buyer had $9.70 bid and it erroniousely executed my trade for $10.70. Buyer challenged and based on exchange rules they cancelled my trades!!!!!!!!

I am speechless since I lost thousands on this one trade after selling, without my fault.
More...

Option exchanges have bust rules but they are often instigated by someone claiming an error.

Sounds to me that fair market value was 9.70 and the other party which most likely was another broker let their client bid 10.70 via a market order or fat finger, other error or sheer ignorance. They then see an immediate loss, call their broker and request a bust. That broker then calls the exchange, decision is made bye exchange, trade busted, details passed to the contra broker (IB) and trade is removed from your account. This isn't IB's fault. The exchange or market will say you should have recognized your order being filled out of market and thus should not have sold. It sucks but nothing you can really do as the broker has to honor the exchange rules and decision.
 
vizzy75 said:
I am new to this. I have a question.

MY options sell order executed at market open. However, 50 minutes later broker called to tell my order cancelled due to IB rules and they are putting those options back in my account, which have lost >30% value since I sold. I am looking up a few thousands loss here. Any help, advice on how to deal with this? Thank you.
More...

I presume that your use of the term "IB" generically refers to an Introducing Broker and not Interactive Brokers, correct?

As you're likely aware, information regarding busted trades is publicly available via Bloomberg time & sales. We were able to identify this particular transaction in that time & sales, check it against transactions executed on behalf of our clients that day and our records show that we weren't on either side of this trade. If you believe differently, please PM me or contact our trade desk.
 
IB-AN said:
I presume that your use of the term "IB" generically refers to an Introducing Broker and not Interactive Brokers, correct?

As you're likely aware, information regarding busted trades is publicly available via Bloomberg time & sales. We were able to identify this particular transaction in that time & sales, check it against transactions executed on behalf of our clients that day and our records show that we weren't on either side of this trade. If you believe differently, please PM me or contact our trade desk.
More...

THANK YOU FOR POSTING -- That is a *very* nice thing to read.
 
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