If margin problem occurs, what will happen?

Discussion in 'Automated Trading' started by Option Trader, Dec 31, 2007.

  1. Perhaps someone can help me in automated trading.

    If something went wrong, (e.g. a One Cancels Other order did not cancel a leg on time and both orders went thru & caused a Regulation T problem), is it sufficient that the extra position is liquidated before the end of day, or will the account be frozen as well till enough funds are deposited?

    B) If it was the broker's fault if the guideline is different?

    Appreciated in advance.
     
  2. Shagi

    Shagi

    Not sure what you on about there dude.

    But if one cancel the other order was not executed at time of filling the first order the second order will act as a stop and when its triggered the you will be flat. The second uncanceled order will close out your position assuming ofcourse it was opposite the first order. If not opposite then you will have a pyramid position.

    As regards to margin requirements and not being rude i suggest you do some homework on that one. obviously position will be liquidated if not you will be in big trouble - responsible for all losses in the account. Again im surprised you trading futures/options without the basic elementary knowledge. good luck in your reading and not trading.
     
  3. Not all OCO orders are bracket orders.
     
  4. Icarus5

    Icarus5

    In general:

    (a) you would have to read the fine print of the brokerage statement that you signed before opening up your account ... you know, the one where they say they have absolutely no responsibility if something goes wrong.

    (b) at which point you're going to have to read the fine print of whatever ATS you're using ... and you'll see that they have absoutely no responisiblity if something goes wrong either.

    Soooooooo, without more detail, we're going to have to assume that they answer to your question is that you get left holding the bag ... don't take my word for it please (read the fine print).

    I
     
  5. Shagi

    Shagi

    Your question was regarding an OCO order
     
  6. If the position has to be liquidated before the end of the day, fine. If the account is "frozen" till a large sum of money is deposited to the account, "not fine". Really, the question is if aside from Reg T to restrict overnight positions beyond 50%, if there is an intraday margining violation can be corrected simply by liquidating?