Hi all, I would like to start this thread as a platform for people who got wiped out in last weeks EUR/CHF move and are unsure on what to do now. Ok, day 3 after the FX tsunami...I'm one of the suckers who got hit hard by the EUR/CHF floor removal...very hard! When coming back from a meeting I faced myself with a negative balance exceeding 5 times my account size. Took everything together to wait for the rebound...wanted to close the position...not possible due to negative account balance! Called IB, they walked me through on how to close it anyway. Left with a minus on my account exceeding two times the cash I had in it. I'm with Interactive Brokers. Question: - Who needs to stand up for the loss? - Is it the duty of IB to close the position if margin is exceeded to protect their own business interest? - What if I can't (or don't want to) equalize the account balance? - What's the normal procedure? - Can maybe someone who got wiped out in the past elaborate the possible options? Please make this a constructive discussion. No lectures on what should have been done. Kind regards and strength to everyone facing the same, F
Well well well: it is very rare for a trader to admit they were one of the "suckers"!!!! So all hats to you for the good laffffff. Lafffff because for once "I was not one of the suckers!!!!" Now that is done, some options: * start legal actions to contest your responsability regarding the losses, and put it on IB. ops:ops:ops:ops:. Seen it done. The long term consequences : imagine you win ( unlikely) , BUT down the line for whatever reason you want again to trade with IB ( "Karma can be a bitch"). * start debts advice procedures : consolidate, negociate how you will repay these debts. Obviously, as I keep seeing real benefits of the 10 days dhamma on people who have done it, I of course recommend a 10 days www.dhamma.org to gain full clarity and make wise decisions.
Hi, What happens to IB's famous auto-liquidation algo ??? http://www.elitetrader.com/et/index.php?threads/ib-initial-margin-vix-futures.288456/#post-4063728 http://www.elitetrader.com/et/index...s-liquidated-at-worst-possible-prices.198144/ http://www.elitetrader.com/et/index...-a-margin-call-does-that-shound-right.225150/
The account will go into collections. They will come after you. They will ruin your credit. And make no mistake about it, not paying them will mean it will be extremely difficult to open a brokerage account ever again. The only way out will be bankruptcy. This is not a prop account. You are liable for your losses and you made that promise when you signed those brokerage statements that nobody ever reads. All brokers indemnify themselves from liability when you open the account and you signed a form agreeing to that. Do the right thing and honor your debt.
Sorry for your loss, but I'm sure you read IB's Forex Risk Disclosure: "RISK DISCLOSURE STATEMENT OFF-EXCHANGE FOREIGN CURRENCY ("FOREX") TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED WITH A FUTURES COMMISSION MERCHANT OR A RETAIL FOREIGN EXCHANGE DEALER AS YOUR COUNTERPARTY. BECAUSE OF THE LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOUR DEPOSIT." Not picking on you at all here, just bringing up what will probably be IB's position. And if you say their system failed to get you out, they will surely say you agreed that there is also risk in electronic trading. Systems fail and at the worst times. But really, have you lost that much? Don't know what your tax situation is, but in general all losses can be carried forward (deducting $3k/year) and netted against future capital gains. Just make sure you have future cap gains! I pay heavy California and Federal taxes, so this helps at least for me. Good trading to all.
all true in a normal case. This may not be a normal case. Perhaps a class action against ib pleading they have always auto liquidated in the past so it has become just standard procedure. But I agree with you. If it was me and times were hard I would set up a payment plan with ib. Orherwise, it is just as you say, start getting phone calls and mail from some collection agency.
IB has to go after him or risk setting a precedent for all future events like this (and there will be more) that it's OK to stick IB or any broker with a debit and walk away. Also, it sends a clear message to investors of IB stock to get the hell out if suddenly they are open to this kind of liability. No, they most certainly have to and will go after him. And make no mistake about it, they will win.
oh sure, that is standard operating procedure. But there is also public perception, legal costs and other things to consider if it is hitting a great many individuals. Not sure how many ib customers went negative, and how many of those were in spot or futures.