Wednesday, September 2, 2015

Interactive Brokers Margin Meltdown?

Back in 1987 after the crash, the big problem in customer accounts were margin calls. Heavily leveraged accounts were being liquidated with abandon during the week of  October 19, 1987.

English: A view from the Member's Gallery insi...We thought everyone learned their lesson - firms and customers alike, since those liquidations caused more problems and litigation than one could imagine. That appeared to be the case, as margin liquidations were an issue during the Tech Wreck in March 2000, the scope and magnitude of the problem was no where near 1987. And again, as the markets tanked during 2008, the scope of margin problems were minimal.

It seems that 6 years of positive results in the market caused some to forget the pain of holding stocks on margin. The 1,000 point swings that we have seen during the past few weeks has whipsawed more than a few margin accounts, causing significant losses to margined accounts.

Customers who were liquidated need to have their accounts reviewed, but we are now looking into claims that Interactive Brokers, liquidated margined positions at inappropriate prices as the market swung .

We are offering free consultations to customers whose accounts were liquidated in the last two weeks over margin calls to determine if those accounts were properly margined, and if the positions were properly liquidated.

Email us, or call 212-509-6544
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