I was short 10 ES, and own 17,500 sh of a $3.00 stock. I designated the stock "liquidate last". Even before I designated the stock as liquidate last, in the past TWS always closed out any short ES positions, and never touched my stock position. So imagine my surprise when last week, they sold off 2,500 shares of the stock, instead of touching the ES position. I complained to IB, and they responded that "liquidate last" is just a request, not a guarantee. But not according to the TWS USer's Guide. Does anybody have any experience with this? Thanks for any info!
No experience -- but you really shouldn't let it get to that point.....yes you can gripe and I don't know how well it's documented -- but if you really wanted to make sure you kept the stock you should have closed out some ES just to make sure.....
This is an overstatement. This feature normally works. Liquidation process depends from time, current liquidity, price spreads, and other factors. There are no any guarantees indeed but we are trying our best every time. Liquidation process is heartless because it is completely automated. A trader should not allow it to happen. Nobody can care about your account better then you.
I agree it was my fault - I felt really stupid watching it happen right in front of me. I just don't understand why it happened. Several times previously when nothing was designated "liquidate last", the ES was always liquidated. The only time I designated the stock "liquidate last", it gets sold instead of ES - makes no sense!