Registered: Oct 2005
08-29-12 06:38 PM
Quote from gmst:
I have been a long time IB customer and I trade fairly actively.
1) Earlier, TWS didn't use to execute an order if after execution, it will result into a margin call. Today I was fully margined, I was long NQ fully margined, and had a limit order to execute long ES which would have clealy resulted into margin liquidation upon execution. As soon as ES price moved to my limit price, my order executed instead of being cancelled and shortly afterwards IB auto-liquidated it. It resulted into a loss, I had not cared to cancel my standing long ES limit order since I believed it would have been rejected by IB. How can IB change its policy without informing clients?
Hi there..can't address IB specific problems however a suggestion for the future....
you wanted to go long the ES but margin wouldn't sustain it so you got auto liquidated. Prior to going long the cash...IF... you had purchased a FOM weekly ES put for lets say 75-125 bucks the margin required to be long would have been substantially reduced saving the auto liquidation. It also allows you to stay in a trade a bit longer rather than get shaken out. Margin is a tricky business and is a crazy calc that personally I can't and don't even try to figure out myself...so I just keep my "risk" tolerable and it works.
I hope it gets worked out for you and at least explained so you fully understand what and how it happened. GL