Hey, but you saved $1 per trade on commission!... This is the dynamic the low-IQ crowd on Elitetrade doesn't understand. There are many many why-use-anyone-but-IB threads, each of them centered around the "savings" you accrue (till you lose the money you "saved" 1000 times over on a liquidation).
I have been a very happy camper at IB for a long time. I generally like them, including their auto-liquidation policy. But the assumption always has been that the auto-liquidation works correctly. Watching this thread with great interest. This will decide if I stay with them or not. I do not have a very large account, but it's not insignificant either. I hope the OP keeps providing information as it develops and answers some of the questions that have been raised by other posters in this thread. I am also hoping def or some other IB rep chimes in this thread as well. OP, I think you should PM def and ask him to hop over to this thread.
I've had an auto-liquidation once in 14 years with IB. In Jan 2001 during the ENE debacle. They liquidated 100 shares when I went a few $K under maintenance. My guess is that this is a hoax, or he was liquidated due to long stock that gapped lower, or a naked short volatility position unrelated to the vertical. If not, then it's clearly actionable.
With all respect to OP if he was wronged - Any rational customer should immediately be on the phone with IB and raising bloody hell before wasting time posting on ET, even if it takes half an hour to get through. Did you speak to an IB rep? If so, what's their name and response?
OK, again I spoke with an IB rep for an hour today, at the end, he said there's nothing they can do because that's how their automated system works. From his tone, he agrees that it is wrong, but if the automated system took an action, regardless of it being correct or not, he can't do anything about it. He said he'll pass my ticket to the compensation department, and since he had many clients waiting, he cannot talk to me any longer. Now who is this "def" person some of you speak of? Can he help? It's so stupid that even if they just exercise my options, I would not be in the hole I am in now.
PM def. Ask him to specifically post in this thread and tell not just you but a lot of us what they are planning to do. Tell him a lot of people are waiting for an answer. This is my business and I need to get the fuck out of IB before this happens to me.
i think ib should come here and explain what happens with their auto liquidate when you see .01 vs 20000 bid ask.
Rodney, what broker would you suggest? Not everyone swings as big a line as you do. Not being facetious here. Only solution I know that works is low(er) leverage and small positions relative to market volume.