Forget ethics. Thats bs. 1. Everyone agrees that it would be nice to get a warning. But that doesn't mean its easy to do. 2. IB didn't fill your order ... they just offered it to the exchange where it was filled. And, lets get real here, if you can't check whether its limit down why would one expect that a low cost, high performance, low service broker would do it? Its not on the job spec. And how long till the exchange opens ... I'm staying up to see what happens
Again for the record. I am not concerned about a few contracts and a loss of a few thousand dollars. My point is simple. IB sends out numerous bulletins about margin,ecns,stocks and their current status etc. I am saying that surely considering the situation where is the bulletin based purely on ethics to the traders. It should state imo ..market locked limit down ...no new positions allowed at this time.. w
Its not about ethics. IB will send any bulletins that they can as they can. Up to the point where they piss us all of with stupid bulletins about exchanges we will never trade. Its a question of how hard it is. I remember they missed one HK typhoon warning once ... the problem is that what IB does well is automatic stuff (the exchange isn't talking to our computer any more). What is harder is manual (someone noting that its limit down, and getting someone else to approve a message, and then getting it added to the queue (say)). Someone said "get a full service broker." Its a little harsh but if you keep whinging on with the "ethics" word ... you are asking for it.
We know the limit price, the future moved in the same range as it did yesterday. It is not everyday we get an limit lock down. Some may never experience one. IMO.. I beleive it is ethics...you're have your own oppinion. How hard would it be to warn your customer of a present serious situation in your field of business. good luck trading to all this morning. We still could get gov't. intervention which could clean out the longs first and then the shorts. w
I asked someone inside IB about this. He said to get a bulletin out, someone has to be aware of a situation, someone (mid-mgmt?) initiates a request for a message, someone has to prepare the message, then the management has to get around to approve it, some messages must get legal/compliance review, then the bulletin is sent to the IT department, IT prepares the message in electronics form, then the IT manager has to approve it... you get the picture...
I'm not sure how long you have been trading futures, but locked markets are not uncommon, nor are trades buying lock limit down or selling lock limit up. Markets often come off of lock limits to trade in the opposite direction, sometimes, amazingly, going lock limit the other side of the previous close. In those instances, the market goes between lock and trading around lock hundreds or thousands of times as bids and offers come in, each of which would generate report with your suggestion. Most importantly, buyers should be able to buy at lock limit down if they so choose.
Let me just add my 2 cents as well and say that if you're going long when the market is limit down you deserve your position. Calling it unethical from an electronic broker is just ridiculous. You are fully responsible for your trade and IB was not at all to blame. The exact same thing would happen with any other broker - other than a full service broker where you'd call in your order and pay 50 bucks a contract. They'd reverse the trade and take the risk on their own book just to keep your business and continue overcharging you. So I agree with everyone else - move on. There's nothing to be sorry about, and even bringing up the broker is uncalled for.