I am a happy customer of Interactive Brokers. I have even started using margin in my portfolio with IBKR recently. IBKR has an auto-liquidation policy when margin requirements are violated. I am in favour of this auto-liquidation policy because it is like having an automatic risk manager even while I am asleep. However, this news article scares the hell out of me now. http://www.reuters.com/article/us-arbitration-interactive-auto-liquidat-idUSKBN0LM23620150218 IBKR has to pay $667k to compensate a customer for its "flawed" auto-liquidation system. Is this an exception rather than the rule? Can the elite traders here share their experience with IBKR's auto-liquidation system, particularly those who have actually experience being auto-liquidated? I think it will be helpful to newbies to margin trading at IBKR. I don't trade options which can be illiquid. I have a diversified equity portfolio and each equity position is relatively liquid. Does that mean I am pretty safe from the auto-liquidation "flaws"? Before the system starts auto-liquidation, does it give a pre-warning first, say around 10 to 30 minutes? Or does the system just liquidate without any warning?