why this order was rejected?

Discussion in 'Interactive Brokers' started by klattermusen, Feb 10, 2023.

  1. TheDawn

    TheDawn

    Just like @mervyn said, I don't think IB allows you to buy options when it sees you won't be able to fulfill any auto-exercise/obligations that can happen upon expiration. With these calls, if you have them on auto-exercise, you will be on the hook to buy all the shares from these calls which is more than the funds that you have in your account even with margin.
     
    #11     Feb 10, 2023
  2. spy

    spy

    At least you'd get some cardio walking down to the corner store that sells the tickets. And I hear half your losses get donated to the public childcare system.

    I knew this guy who used to call them "suicide options"... I assume because you'd only buy them if you had nothing to live for; lol. He'd brag that he liked playing them but they're not my cup of tea.

    Last time I saw him he was scrounging through his couch cushions for extra money so that he could ride his bicycle to go get cigarettes. IDK if there's a cause and effect there though... good guy anyway. Fun at parties :D
     
    Last edited: Feb 10, 2023
    #12     Feb 10, 2023
  3. Usually any warning text with a yellow background can be overridden manually. But any error message with a red background will stop a trade from being accepted by IB.
     
    #13     Feb 10, 2023
  4. mervyn

    mervyn

    I don’t know, simply check the account overnight buying power. If it is within limits, you can trade.

    OP can try, for example, a 2.5k call options at 2 cents expiring next Friday, that it is way out of money, maybe the broker can take the trade. I did large volume calls 6-9 months out on AAPL, TSLA, AMZN, etc, all work out.
     
    #14     Feb 10, 2023
  5. I guess a broker bug related to margin acct.
    With a cash acct it should go thru, IMO, b/c then only checked for availability of $5000 (=2500 * 100 * 0.02) + commission.
     
    #15     Feb 11, 2023
  6. Thank you gentlemen. Outstand as always.
     
    #16     Feb 11, 2023
  7. newwurldmn

    newwurldmn

    but if he auto exercises (because he forgot to abandon) then there’s a problem.
     
    #17     Feb 12, 2023