Any Fault to Broker

Recently, my trading account was doing great until it hit a train wreck that wiped me out and more in a single day. Scary situation.

I was trading a combination of ES futures and ES futures options and I made a big miscalculation in pricing. The blowup exploded, when the broker allowed me to buy on negative buying power. This additional ability buying did not not increase my buying power(meaning moving closer to zero since at the time my buying power was negative.

The way the positions moved is my fault, but has anyone heard of a similar situation and is the broker at fault in anyway for allowing of additional buying when the buying power is negative? Note this buying did not raise the buying power in the account. The negative buying power was below (-$10,000). Thanks for any thoughts.

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Comments (7)

Sep 7, 2011 - 2:03am

So let me get this straight: you had all your money tied up in one trade?

Get busy living
Sep 7, 2011 - 2:23am

The money was tied up between ES Options and ES futures. Essentially it was long one and short the other. I am not really here for..... position management etc. The trade tactic was not the smartest nor the best. I made a pretty big miscalculation. I just wanted to know regarding the ability to buy on negative buying power

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Sep 7, 2011 - 1:23pm
shorttheworld:
im pretty sure its only your fault, if there was any margin call req that you couldnt make then the broker would be on the short end of the stick

basically you have no chance of trying to get your money back from them if youre even gonna try to think about that


Thanks for assistance. Any thoughts regarding liquidation of options instead of execrising to mitigate risk. (Acting out of clients interests and were supposively suppose to be given time to exit, few minutes later firesales?
Sep 7, 2011 - 9:25pm

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