The Little Guy Loses Again

Discussion in 'Order Execution' started by nasdaq1987, Feb 22, 2009.

  1. I placed an order to purchase one contract in the DX tonight after I noticed that it had plunged nearly 7%. The order got filled and I subsequently made another purchase in a separate contract to hedge the risk in the event that there was an underlying reason for the weakness.

    The price quickly recovered and I was sitting on a sizable gain. A few minutes later, IB notified me that "The number of shares/contracts traded for this order has been revised downward to 0". Essentially they undid everything (but still charged me the commission) and now I'm left holding no DX contracts and a hedge which serves no purpose and which is losing me money.

    Do I have any legal recourse to recovery the money they essentially stole from me (exceeding $5,000)? Has anyone had a similar experience? Will they compensate me for the other trade I entered as a hedge? I'm assuming this is just another case of the little guy getting screwed over.

    I'd appreciate any advise.
  2. Your anger is understandable, but misdirected. It is easy to blame IB, but once again (and again, and again, and again...) it is very doubtful it is IB's fault. You are right. The little guy does lose, at least when dealing with exchanges. For example I have had several stock trade busts over the years. If you have a long trade busted, and you have already sold it, then you are short and responsible for any losses. Is it fair? Not to me, but that's trading...

    IB is NOT the exchange! IB does not bust trades! IB does not make up or change fills! - IB is simply the order system for these contracts. IB submits and reports fills from the exchange. Period.

    You should, by all means, contact IB and have them investigate. They should be able to tell you what happened. Be ready to send them your Audit Trail file.

    Good trading.
  3. Unless there's some new policy, or a fee for busting, they should have refunded the commission, too.
  4. Thanks Wayne. After I posted I realized that it was in fact the exchange I should be dealing with.

    I'll try contact IB and see if there is any procedure for me to follow, as im sure they've dealt with many similar cases before.

    Im considering filing a complaint with the SEC as well. Not sure if anyone has any advise or experience in dealing with them?
  5. TraDaToR


    It has happened to me once.

    There was technical problems on IPE markets and I bought some gasoline against NYMEX gasoline.

    After a while( 1 day in fact ), the fill is busted and I hold a big losing position on NYMEX. I asked IB and they said they executed my IPE position in the wrong expiry and ICE busted it.

    I don't know whose fault it was but IB reimbursed me for the whole losing leg( 1700 $ I think ) and made me sign an agreement that I would not sue IB for this problem.
  6. Uh, excuse me, not to make light of the situation, but, if you had used the ET spellchecker before submitting your thread, you would have correctly titled the thread:

    "The Little Guy Looses Again."

    Sorry couldn't resist. I do hope you are able to get your situation resolved. Keep us posted.
  7. DXH9 is a futures contract, you must file complaints with the NYBOT, CFTC and NFA not the SEC.
  8. cvds16


    do you think you are funny, or are you just dumb :eek: :eek: :confused:
  9. At first I thought he was being funny, but the way it was written - businesslike, serious tone, I guess he really meant it...

    Do I even dare....

    "loose" is the opposite of "tight"

    "lose" is the opposite of "win"
  10. cdvs, I thought I was being funny, in a sarcastic sort of way. Again, not to divert attention away from Nas' problem, but just scroll through a few threads on ET, I guarantee you will find at least one new post daily where the word "lose" is misspelled. It was actually strange to see the OP's title actually spelling "lose" correctly
    #10     Feb 25, 2009