Why wasn't just part of the position closed to bring it into compliance? Then there would be less of a problem?
I agree, I think he got mad and made some statements that did not pertain to trading. But he started it! And my dad could probably beat up his dad!
I couldn't help help myself...I have to comment. It doesn't matter if you live in Afghanistan, you have an account IN the United States which is governed by the SEC (they reside in United States) and every other SRO (they reside in the United States) then you must abide by their rules, because they reside in the United States. If you gave me $10K of your money to trade in a cash account and I bought $20K worth of Widgets Inc. which trades on the Pink Sheets and the stock is halted mid-day and declares bankruptcy, who ponies up the other $10K? I'm just a trader on your account and I don't have any money. Then you (aka the firm) would be out $10K because you (they) didn't close that position out. When maintenance calls are generated firms are not in the business of nor do they have the time to project what the position will do in the future. Even though US currencies have a major impact on the CAC, no RISK department for any firm will consider that. I'm truly amazed that you went through the trouble to close your account and don't understand the business aspect from IB's perspective. I'm sure you're getting an ass kicking on this board right now for your comments, but most of us really are trying to educate you and bring back to reality.
wow, i missed all the fun last night, french bashing and all. FWIW, overnight, IB prefers not to autoliquidate due to the thin markets. Under normal circumstances they would have been liquidated on the open. Red flags were raised, compliance called and that should be the end of it. No one likes to be forced out of a position. Nick Leeson didn't,. ditto for the Griffen Case, the Irish Bank Forex case, and the list goes on. Brokers must protect themselves and their clients. Mike-claire: read the margin agreement you signed. It clearly states that if you violate margin the firm can autoliq the account. You were given a courtesy of a phone call. 14. Margin Requirements: A. In General. Customer shall monitor Customer's account so that at all times the account shall contain a sufficient account balance to meet the margin requirements set by IB. IB may modify such margin requirements for any Customer for open and new positions, at any time, in IB's sole discretion. The margin required by IB may exceed the margin required by any exchange or clearing house. IB may reject any Customer order if Customer does not have a sufficient account balance to meet margin requirements and may delay the processing of any order while determining the correct margin status of Customer's account. Customer shall maintain, without notice or demand, a sufficient account balance at all times so as to continuously meet the margin requirements established by IB. IB has no obligation to notify Customer of any failure to meet margin requirements in Customer's account prior to IB exercising its rights and remedies under this Agreement. Customer understands that IB will not issue margin calls, that IB will not credit Customer's account to meet intraday margin deficiencies, and that IB is authorized to liquidate positions in Customer's account in order to satisfy margin requirements without prior notice to Customer (See Section 16). Sorry things didn't work out. But in effect you were knowingly violating an agreement and should not be surprised when appropriate action is taken. Finally, IB in its doucments clearly states that it does not make margin calls. Other US brokers will afford you time to put up cash to settle funds. It is not a US/French issue. I am certain are aware of this information.
"They could have prevented us before opening our position. They knew it, the did nothing before and they did it on purpose." Like saying after a murder, "its not my fault, the police should have found a way to stop me. It's their fault, not mine". My God you're an arrogant snot.
Every Direct Access firm has a quirk every now and then with margin calculations and their software especially when it comes to options and selling contracts to open, nakeds, straddles, spreads, ect; If you're going to trade those type of strategies then you need to be able to calculate by hand margin requirements.
Starts with a guy admitting he broke US securities law and is whining that his broker made him undo the trade. Ends with him changing the subject to USA bashing. The colonialism aspect was amusing. God knows the French never had any colonies
Something weird about this whole thing -- with the exception of a major glitch (or facts left out), margin / buying power cannot be exceed on the establishment of a new position on IB's system.