Ya I like the policy, the flash crash thing seems to come up often with regards to it. People need to remember what if the next flash crash doesnt bounce back? I will be glad they have the policy
I agree with you. I have found futures have been kinder to me than a bunch of company insiders of a publicly traded company.
Today (08/04/2011) is exactly the type of day for why IB has an autoliquidation policy. If you are wrong and overleveraged and don't fix the problem, then IB fixes it for you. Ruthless and efficient autoliquidation is the way to protect IB and its customers. Learn from it and you will not repeat it.
As bad as it might be -- $300 isn't much, but its still $300 -- auto-liquidation is still better than going under by $300... thats the worst.... when you owe the broker... so be happy it turned out as it did... you could have been less "lucky"
Can you explain this in more detail? When you say you "went to TWS" after getting the notice, are you saying the notice was delivered to you in a form other than a popup window in TWS? Via email, perhaps? When was the email sent?
you guys who like the auto-liquidation, wait until one day you have a short position with a 0.10x0.20 with a $150 mark. you'll be singing to a different tune and yes something like that HAS happened
IB has liberal leverage, low margin, low commissions and low fees. And it has come up again and again on ET, they will liquidate a portfolio in a heart beat, if an account hits one of their risk triggers. They offer you the leverage, and don't over charge with margin; but they will quickly liquidate (guess its automated) and won't ask for your opinion if that leverage becomes a risk to one's account. Personally, I don't have a problem with it; in fact its a good business practice on their end.. They are up front about it. Its not arbitrary. And a trader's account screen at any given moment shows, if things are getting close to this happening. They've probably saved traders tons of money by doing this. Limiting it to a major loss instead of a major ruin.