Micro Gold Futures - Buy order rejected in IB paper account

Discussion in 'Interactive Brokers' started by blink18, Aug 5, 2020.

  1. blink18


    Today I wanted to buy futures contract on MGC that expires in August 2020 (MGCQ0), and I got this message via API: "order rejected: it does not comply with our handling rules for derivatives that result in physical delivery".

    Since trading with this contract terminates on the third last business day of the contract month (27.8.2020), does anyone know why I cannot buy it? It's still plenty of time left till IB close-out deadline.

    I also tried to buy October 2020 futures contract (MGCV0) and it worked without any problems.
    Last edited: Aug 5, 2020
    murray t turtle likes this.
  2. H2O


    As IB does not allow making or taking delivery, could it be that it is not allowed to open new positions after the first notice date (which was on 31/07 for the MGCQ0 contract)?

    Edit: More info here https://www.interactivebrokers.com/en/index.php?f=deliveryExerciseActions&p=physical
    blink18 and murray t turtle like this.
  3. %%
    Another good thing about tech analysis;
    we accept the truth + find out why later. Sounds like they did you a favor...…...
  4. Overnight


    GC rolled to the December contract a week ago. Follow the volume, man. Get out of the OCT position.
    blink18 and murray t turtle like this.
  5. easymon1


    retail janet sixpack gold phys delivery, that would be a trick fer sure.
    hell the paper gold world would go up like flash paper in a blast furnace.
    just might be a leetle manipulatitate haps in those quarters. not that there's anything wrong with that.
    bypass the vig and everything, oh laa wee. i'm in.
  6. blink18


    Is highest liquidity in a contract five months into the future normal behaviour for GC/MGC? I usually follow MES/ZN and highest liquidity is in the next 3-month contract.
  7. Overnight


    GC is a weird one on the CME. Volume-wise it normally flows, if memory serves, from... Feb, April, June, August, December.

    While all months are listed, those are where the volumes roll to. Dunno' why. Just a quirk? But just follow the volume.
    blink18 likes this.
  8. maxinger


    You might be the next world famous trading hero (like the hero who traded expiring oil contract when oil price was negative)!

    because of people like you, most brokers disallow traders to trade contracts that is expiring soon.
    and that is a good protection for traders and brokers.

    always trade the most active contract which for this case is Dec 2020 contract.

    please make sure you have all the basic knowledge before you proceed to trade.
    if not , it might cost arms, legs or even lives
  9. blink18


    Relax, it's paper/demo trading account.
  10. Overnight


    Be careful master Max. He could rise up and learn more about the CME than you.

    And if he does, you'll be sorry you were hacking on him. :)

    #10     Aug 5, 2020