Why would IB do this?

Discussion in 'Retail Brokers' started by dont, Sep 14, 2007.

  1. dont


    I had a Long KOSPI 200 Futures position going into the expiry yesterday.

    The futures closed at 233.45. The official Index close was 233.86.

    The futures are cash settled.

    My statement today reads, Sell future at 233.45 and wait for it they charge me KRW5 000 for the privilege!

    Besides the loss from 233.45 to 233.86. I used these futures as a hedge against an options position.

    So what this means is you can't trade out of a position using Calls to close Puts or vice versa.

    This is a problem because IB charges a 0.2% comm so closing a deep in the money call is expensive, it makes more sense to trade the Put and the same amount of futures.

    But what is the point if the Futures close out at a different reference to the options.
  2. dont


    I must be retarded not seeing anything about settlement method?

    Should also mention the options settled at 233.86 no comm?
  3. click on the Kospi 200 link and then the details for the contract in question. Settlement method is there.

    Best regards,
  4. dont


    Yeah, and it says quite clearly settlement method for the futures is CASH!

    So why did they use the last trade price of the futures instead of the closing of the Index which they used for the options?

    Basically they used 233.86 to cash settle the options.

    But bought back the short futures at the last traded price on the futures + comm.

    One of the things that alerted me was that the there was a futures trade!

    Also no chance of a margin liquidation issue so don't ask.
  5. Keeping it polite.

    Now that you've finally looked up the details on how your broker treats the thing you trade (come on, who's fault is it if you don't do your homework?)

    Cash means ... when it expires it gets cashed up. Thats it. It doesn't say anything about futures contracts. CASH means you get paid some money if your option expires and is worth something at that point.
  6. dont


    keeping it polite!

    IB has just informed me that I am right and there settlement department is correcting it.

    So go and shove it!
  7. LOL.

    No need now. Shove it up your ass wanker.

    The bulk of your complaint came down to: I'm to lazy (stupid?) to look up the information my broker provides me. Its amazing they let you trade options really.
  8. dont


    Heh wanker did you notice that I said they admitted their MISTAKE.

    IGNORE is such a wonderful thing. You are going there so enjoy!

    Just one question whats the difference between a New Zealander and a sperm.

    A sperm has one in a million chance of being human!:p
  9. dont


    Heh Kiwi_wanker. I have you on ignore but I still get the mail saying you posted.

    Sorry mate I am done with you!
    #10     Sep 14, 2007