IB trashes account - what would TOS do?

Discussion in 'Options' started by lejmorro, Oct 20, 2008.

  1. lejmorro


    To cut a long story short, IB trashed my account on Friday and I'm asking what TOS would do.

    The circumstances are - I have about $20K of gold stocks and gold stock options, struggling obviously but they are in for the long haul.

    I also have a few deep in the money vertical put spreads which I am waiting to expire and take the loss. During the last week, I am actually assigned twice and exercise the cover and take the expected loss.

    However, on Friday, (I am in Australia), the last time I could check my account was 2 hours before Friday's market opens. When I next check the account about 3pm Friday (New York time), IB have fire-sold all the gold stocks and gold stock options because of another assignment.

    All what was needed was to exercise the corresponding cover for the assignment. It is of course absurd that IB trashes the account instead, and did so, literally 10 minutes after the market opened on Friday.

    Disregarding, for the moment all the circumstances which got me into this position in the first place, which I take responsibility for, I still find IB's action draconian, unnecessary and to put it mildly, a big f-you from IB. Even their warning emails about the liquidation threat (unlike any other IB emails) are going straight
    into the Junk Email bin of Windows Mail because they are so roughly formatted.

    So back to my question - would TOS do it any different? Because forget commission comparisons or anything else if they would do it different.
  2. dan_s


    Email TOS customer service and let us know what they say. I've been comparing IB and TOS for the last three months or so (placing mirror orders on both, seeing where/when I got filled and who ha the better price). I've had an IB account for about 2 years, but after having customer service problems with IB, decided to check out TOS. Before opening the account, I sent many questions to customer service, and they quickly replied to all of them.
  3. "You sleep in the bed you make."
  4. "You may get f*cked in it too."
  5. awe you guys are making me horny :D
  6. lejmorro


    Fair enough!

    But all I'm asking is whether TOS would do it differently? Would they trash your account 10 minutes after the open when the OCC give you all day to cover the assignment?
  7. What if the position(s) went further against you during the day? Then IB has to play bill collector.
  8. In all, how much did IB cost you?
  9. They saved the OP from further losses.
  10. I remember reading in other ET threads that IB has some liquidation priority choices that you can setup. I believe these choices are rather limited, but perhaps could have helped.

    #10     Oct 20, 2008