PUT options liquidated at worst possible prices

Discussion in 'Options' started by somedudetrader, May 6, 2010.

  1. gov

    gov

    I agree 100%. From IB's website: 1981 Efforts are made to code and test a system that identifies potential delta neutral trade pairs. Our greatest challenge: how to electronically read the prices of options as they are posted

    From 2000: On average, more than six percent of the daily global volume of exchange-traded equity options and equity futures is now traded across the Timber Hill/IB network.

    Hmmmmmm. Maybe I know why they were liquidated in that order....
     
    #61     May 7, 2010
  2. this cant be the only case. ib might have a big problem on its hands.
     
    #62     May 7, 2010
  3. I've used many brokers, but I would never use one I didn't trust to call and speak to me person-to-person <i>on the phone</i> before liquidating any of my positions. For me that's an absolute, but of course YMMV. I'm not a fan of being "auto-liquidated", possibly on the basis of (if OP is to be believed) datafeed misprints (!!).
     
    #63     May 7, 2010
  4. One

    One

    OP, thanks for posting the detailed info. If those were your only positions, the liquidation is troubling for IB clients, of which I am one. I hope this is resolved in your favor.
     
    #64     May 7, 2010
  5. donnap

    donnap

    +1
     
    #65     May 7, 2010
  6. Now you find out IB would do this eh??

    I found this out long time ago, they can simply execute your order for whatever reason you LIKE, and do not compensate.

    Just move on, lesson learn. Find a broker who cares about customers. It is too big to fall(care for you ).
     
    #66     May 7, 2010
  7. pbj

    pbj

    IB's implementation of auto-liquidation is very worrying.

    VTI (Vanguard Total Stock Market ETF) represents the whole United States stock market, and the low price was $0.15 on Thursday when its actual price is $57.

    I hope IB's algorithm is smart enough to filter out bad data points and not auto-liquidate in the case of VTI, but from this thread it appears that this may not be the case.

    I would like to hear from IB what it is doing to ensure that erroneous prices in an ETF such as VTI does not result in auto-liquidation.
     
    #67     May 7, 2010
  8. After reading your positions held in the account, it is shocking
    to know how IB actually liquidated positions due to miscaculated
    margin call. I hope you will get this issue resolved with IB very
    soon. It seems not a single person got a decent fill when his/her
    positions are auto-liquidated. I am wondering what the reason
    behind this is to knowingly design a system that close a position
    very poorly for a customer. If the counter party is an entity from
    IB, is this against the law forbiding knowingly crossing an order
    with both parties known to a brokerage? Hope someone here
    will provide the answer.
     
    #68     May 7, 2010
  9. rew

    rew

    Was there some other margined position you had that was so underwater it forced the liquidation of other stuff, namely your 119/114 SPY put spread? If that was the case, then the problem comes down to a program that doesn't know how to close a spread properly. Otherwise, we're still left with the mystery of why you were liquidated at all.
     
    #69     May 7, 2010
  10. olias

    olias

    I disagree. OP, you should keep fighting this one
     
    #70     May 7, 2010