IB customers lose $88m trading WTI crude

Discussion in 'Interactive Brokers' started by ZBZB, Apr 21, 2020.

  1. abc1234

    abc1234

    The IB losses were on the ICE WTI contract. It stopped trading on Monday and settled to Monday NYMEX closing price.
    The NYMEX May contract final trade day was Tuesday.
    https://www.theice.com/products/213/WTI-Crude-Futures
     
    #131     Apr 24, 2020
    qwerty11 likes this.
  2. southall

    southall

    The question to ask is why did CME enable negative prices in April?

    If they hadn't enabled it, it would never of happened, not even once.
     
    #132     Apr 24, 2020
  3. Overnight

    Overnight

    Because they buried Paul.

     
    #133     Apr 24, 2020
  4. d08

    d08

    Forex causes losses, then oil futures. What do they do? raise margins for equities.
     
    #134     Apr 24, 2020
    southall likes this.
  5. Did anyone try market order if it would go through? Kinda risky as the spreads may be horrendous at the time. But if you must get out you must get out I guess.
     
    #135     Apr 25, 2020
  6. Euribate

    Euribate

    Dear MtrGuy

    I read carefully your post and this exactly what happened to me as well. I also had few contracts of WTI that created a large loss. I actually was looking for advices and help and also I wish to start a collective legal action against IB and CME. I was wondering if you know any blogs, Facebook page where we can join our efforts and energy to collect findings and potentially organise a join legal action against IB and CME if suitable on the above subject.

    My point and agree with you is that
    - IB did not show negative price on my system on the trading day, I inserted my purchase at 0.5 usd not knowing the price was already on negative, which did not show in IB trading system. Then IB account showed that my execution made at -0.75 USD and when I tried to sell out to exit immediately, I did not see any actual price as it showed still at above 0.01 USD.
    - My other platform did not allowed me to purchase the same invest on the same day, same time but why IB did. I only assume that others have enabled not to execute on purchasing at negative price and this way protect the firm and the customers.
     
    #136     Apr 25, 2020
  7. To sum up, 3 contracts are involved, 2 are cash settled.
    On April 20, IB customers could trade either QM May 20 or WTI May 20.

    Main specifications follow:

    CL May20 physical delivery, last trading date APR 21 '20 14:30 EST, Nymex, multiplier 1000
    QM May20 cash, last trading date APR 20 '20 14:30 EST, Nymex, multiplier 500
    WTI May20 cash, last trading date APR 20 '20 19:30 BST, ICE, multiplier 1000

    Monday, 20 Apr 2020 Settle:
    CL May 20: -37.63
    QM May 20: -37.63
    WTI May 20: -37.63

    Monday, 21 Apr 2020 Settle:
    CL May 20: 10.01
     
    #137     Apr 25, 2020
    qwerty11 likes this.
  8. SunTrader

    SunTrader

    Shocking!! Someone actually lost in trading.

    And negative numbers. That should be illegal. Somebody ought to pass a law or somtin.
     
    #138     Apr 25, 2020
  9. southall

    southall

    It is all about protecting the Peterfly's Billions.

    IB customers in aggregate must have massive equity positions.

    Perhaps Peterfly should take out $7 billion as a dividend. Then he can think more rationally.
     
    #139     Apr 25, 2020
    d08 likes this.
  10. Euribate

    Euribate

    Hi Creator, I believe you and I am on the same page with you.
    I did not see any negative pricing on IB on 20 April.
    I have lost all my fund as well.They executed on negative price but my account still showing the positive 0.01 USD till the morning of 21 April.
    I only could think that IB did not have the negative pricing on the platform, which I could not see nor to put an order for negative price to exit.
    Hope we can cope to send the message to IB and to further investigate the situation.
     
    #140     Apr 25, 2020