Of course you have to make the decision for yourself, but in my experience it is best to close this type of trade immediately. First, to the extent they are willing to reimburse you, the brokerage or clearing firms will only do so as of the point you knew of the trade. They are not in the business of writing free options for clients on out trades. Second, whether or not the firms reimburse you for your loss, monitoring and trading the position will take you away from your normal trading, and if it runs against you could have a negative impact on your emotions and future trading. More importantly from my standpoint, this is not a trade that you wanted to be in or that you would put on now, and like all trades of these sorts should be closed immediately. Good luck.
A little something extra that might help. Get the email address of the lawyer you talked to. Make the best possible case for busting the trade in an email to Option Express. "Cc" the email to *every* regulator email address you can find that will pertain to the case (all CFTC addresses you can find if they are the regulator, and all FINRA email addresses). Also "cc" the lawyer. If you can get any regulator to talk to you on the phone, thank them in the body of the email for taking an interest in this abusive situation. The thing that's screwed up about a case like this is Option Express could occasionally dump losers on people to make money. I'm not saying that's what they're doing. But, how could the clearing and settlement systems be set up in such a way that such a possibility can even exist? If you get an "out", you're out. Period. Someone else should pay for the error after you get an out. It would get to me for months, knowing that you may have taken the fall for some sort of back office error committed by another party. Take it all the way. 50k should be worth it. Good luck and let us know how this turns out.
OX takeover of XT has a host of problems... they dont even have streaming tick charts so I called and the guy said they're "working on it"....wtf... didnt give an estimated time of when............
1011101 Registered: Oct 2005 Posts: 26 01-04-08 04:58 PM Yesterday placed a day limit futures trade. Did not execute, so I cancelled it. Did a bunch of other trades since this morning. ################################# "...Multiple angle's of attack and reinforcement this direction ,which advanced ..." Helmut von Moltke From experience of the author 1.Catch all e-mail adresse's ,which possible by cftc.org ,nfa,sec , cme 2 .Write complaint 3 .Send to more as 100 e-mail adresse's 4. You would received possible 2-3 relevant answer ... from investigator . If you have secured your communication exchange's with broker -send to investigator so speedy as possible .... Your respectfully ...
Call OX back and demand to speak to a supervisor/managing director, and give him your case. In all likelihood he/she will see you have the supporting docs and they will have the clearing firm eat the trade. If they still deny your claim, only then should you talk to a lawyer and pursue arbitration. There's no need paying lawyers fees when you can just talk to a higher up at OX.
If this happened to me, and since I am a lawyer, I would certainly explore the possibility of suing RJO for negligence. I would argue that they have a duty to promptly notify the counterparty of a trade execution. Their timely failure to do so resulted in a much greater loss than would otherwise have occurred. In any event, I would certainly want to know why there was an 18 hour delay in notification.
Will one of you more experienced traders then explain what minumum records we should printout at the end of each trading session to protect oureselves???? On my platform I just receive "alerts" from my broker saying for example (Buy 1000 rimm executed) or(Buy 1000 Rimm Cancelled). Is this enough??? Should one be going into the broker website at the end of each day and trying to print-out order executions or cancellations for 75 trades since the official "trade-confirmation" doesn't come for atleast one business day later? Thanks
I guess this is one decent thing about IB TWS - there's an audit trail available with the click of a mouse. If you're unsure about whether your cancellation was sent, or just want to see it if it's a significant order, check the audit trail (as far as I understand, please correct me if I'm wrong). To the OP, I hope you get this worked out with a minimum of hassle. F**king good thing you have the cancellation confirmations.
You should print out your daily runs each day. If you are high volume trader that may be alot of paper work but in a case like this it would help. You can print out your main clearing page that should show your positions open/closed. They can screw you in many ways in this business. If your clearing isn't up at the days end take a snapshot of your layout.