Complaint - GME liquidation problem which resulted in huge negative liquidation value

Discussion in 'Interactive Brokers' started by Baldur01, Feb 4, 2021.

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  1. smallfil

    smallfil

    This is a margin call. You essentially, borrowed monies from your broker. Understand that the broker will protect its interests because huge losses you incur when you use margin, they will have to eat up before, they go after you. Closing the trade is the right thing to do for the broker. If not, you would have had larger losses. Naked calls is highly risky and you got into a trade without even understanding the risks. It is on you buddy. Read up on options and the various risk profiles before placing another trade.
     
    #21     Feb 4, 2021
    Nobert likes this.
  2. noddyboy

    noddyboy

    I feel for you. Hopefully you recover from this soon.
     
    #22     Feb 4, 2021
  3. Nobert

    Nobert

    So you got toasted.

    Fine. Forget about others ,,doing wrong", admit your own foolish mistakes, dust yourself off & move on.

    Lesson learned.
     
    #23     Feb 4, 2021
    MoreLeverage and smallfil like this.
  4. Baldur01

    Baldur01

    Thank you for the answer.
    1. It is not in writing, but they do record those phone calls. Obviously, if you are told on the phone "10min after the market opens", it should not be 4hours. And if there is a chance of 4h, they should say that.
    2. I understand the point of volatility, which can happen a few minutes the market opens. During the 4 hours, there was not a huge option price volatility. Plenty of time to exit.
     
    #24     Feb 4, 2021
  5. It's very important to trade via corporate account not INDIVIDUAL account if u are selling calls... Ind account they can sue you. In another way around your company just goes bankruptcy-everyday life...
     
    #25     Feb 4, 2021
    cesfx likes this.
  6. I just wonder how IBKR gets your money? Does it sue you or just make it as a losses to them?

    Talking about situations...I am sorry for you, but you cant do anything unless you have millions of dollars to pay for lawyers. They have always excuses...
     
    #26     Feb 4, 2021
  7. Baldur01

    Baldur01

    I agree totally with you. I did fuck up. However, there are certain mechanisms that should work. This fuck-up could have costed me 40-50k less withough IBKRs fuckup.
     
    #27     Feb 4, 2021
    cesfx and Nobert like this.
  8. Bad_Badness

    Bad_Badness

    Now you know that markets are not always orderly. Sometimes MKT orders don't execute etc.

    THIS IS NOT RETAIL PURCHASING. THIS IS TRADING. There are no guarantees, Customer Service to "make it right", returns, warranties, etc. You are the 12th person, who recently posted here who does not seem to understand this concept. They all took big risks looking for fast money, and get burned, then complain.

    If one truly understands this, you will shake it off as an educational fee, and go back and trade. It seems you are well organized and proficient. These things happen. Now you know and can work to mitigate the risk. Just be happy you did not loose 6-7 digits. Best of luck
     
    Last edited: Feb 4, 2021
    #28     Feb 4, 2021
    Collagen and smallfil like this.
  9. They fucked up, but many brokers also fucked up. You will just be one among the thousands got fucked, so they won't take it seriously.
     
    #29     Feb 4, 2021
    TrailerParkTed likes this.
  10. IBKR has worse support ever. If you make premarket misclick, just selling AMZN for example 10$stock. You probably cannot reach support to request cancel trades...
     
    #30     Feb 4, 2021
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