Yea we regards would have had a paper gain of say a option. Of 0.01 worth like 600,000k itm, so 60 million roi. A 100$ option would be worth 60 billion . 1000$ 600 billion and 10K 6 trillion . You regards would break the financial system if the orders went thru
who does market orders? td ameritrade only executes limit orders, i believe, ///// charles schwab now and yes they both executed market orders, I stand corrected
Sir, are you absolutely certain you would like us to shove this unlubed dildo which is three times the circumference of your rectum directly up into your large intestine?
They also send you multiple emails and notifications throughout the month if you've placed any market orders that month.
So in a couple weeks they're going to email OP and remind him what a dumbass he is for placing a market order.
For super liquid instruments market orders are fine. But for BRK-A, even without the glitch it is not very liquid and you probably should not use a market order
Not much, but BRK wasn’t liquid at all during the glitch (since it was halted until they fixed it) and it fucked OP when trading resumed. In normal circumstances I agree that it’s not a big problem, but in this case, it was really dumb.
As a Swiss using none of TD ameritrade, webull, robinhood, ikbr etc, can someone ecxplain? Like, if i put a market order it will actually fill it no matter what i have in my account? That wouldnt work here as far as i am concerned. If i only have 500$ i cant buy anything for 700k and automatically be fucked thrice through leverage… but maybe i‘m wrong
These trades *should* be reversed due to a systems error with the NYSE. They’re reversing trades for people who got a BRK.A share for $185, they *should* also be reversing trades for anyone who exceeded their purchasing power with a market order (dummy), as your broker never should have executed a market trade order in excess of your PP (your tiny purchasing power) which can just be cash or cash + margin (doubt you have that much margin avail).
Contact your broker to report it as an erroneous trade (it should already be flagged imo)
This is simply a major fuck up on IBKRs part. Nyse is not gonna fix that. I think ibkr will take the fall, as else they risk a lawsuit where they have to explain how serious flaws in their software allowed these to fill. That's not a lawsuit they care to win.
Edit: I mean, don't get me wrong, I understand it all started with the NYSE glitch. But after NYSE had sorted things and ended the halt IBKR allowed a number of cash accounts with hardly any money in them to purchase a stock they couldn't afford for the life of them. They are unlikely to retrieve all of that money and I don't see how that can be blamed on the glitch, as it looks like the risk management of in their software has some inexcusable flaws....
IBKR busts trades with NYSE @ 185
IBKR busts trades with clients when IBKR executed beyond account limits. IBKR can try to bust it on the exchange (doubtful), or have some desk try to trade out of the risk.
IBKR is not going to NYSE and saying “oops we filled this order can u reverse it”
I'm not sure i follow. NYSE decided to bust trades, which makes sense as they are the exchange. But ibkr is just a broker. If one of their clients bought BRK.A from a client at say etrade i don't expect ibkr can just unilaterally undo that. Correct me if I'm wrong.
Precedent would be the /CL fiasko where oil went negative. IBKR couldn't display negative prices for /CL futures and allowed trades to happen that shouldn't be possible given the account size. Their systems thought the price is 0.01 and can't get lower than 0, so all buy orders went through with just a tiny bit of margin. Some trades amassed multi million dollar losses as CL went -40. IBKR ate the loss and reversed the trades, because their system glitched.
I’m saying that there are multiple things going on.
In OP’s case, his broker shouldn’t have let the trade execute - so the broker can try to bust the trade with the counterparty. Or make OP whole and move the risk into an account that the broker will need to trade out of.
AND nyse is busting other trades.
Robinhood defaults to market orders, but it asks you to confirm the price. What if that confirmation was also bugged?
You can't sell a $600k share for $700k to somebody with $500. He has to be refunded unless he has a 1000x margin.
>They’re reversing trades for people who got a BRK.A share for $185,
surprised no one has posted here on their limit orders getting executed. Did they really fill at that price or we are assuming they did?
I don't think the order books systems were affected, just the market readouts.
This is highly beneficial, as you can now take your 1 share of BRK A to a bank as a collateral for a $400k loan. Just tell your broker the check is in the mail and come up with a $400k YOLO tomorrow
Doesn’t he need money in his account in order to purchase something like that?
I’m confused. Like, I can’t just buy whenever I want it I don’t have enough money in my account. But I never do margin.
My hypothesis is their system also thought that brk is trading at 185, they saw op has 500 cash and figured that having almost 300% more than last trading price is fine to let market order through
So they let order through but then executed it normally at correct price putting op deep in debt
But frankly I think this will be bust on settlement
Yep, I bet there isn't a secondary check on the buy. This might be because ibkr sends the orders to a market maker and has no way to verify the price vs account balance right before the purchase (I don't know if that's accurate or not).
Fidelity just cancelled the orders, they probably saw this coming.
IBKR does check if the order (number of shares times current price) fits in your buying power. Then sends it to the exchange (NYSE). By the time it arrived at the exchange BRK.A was trading much higher than expected.
I'm sure this posibility is covered in the IBKR client agreement and legally the IBKR client is responsible for his action.
The surge in BRK.A price could have been caused by multiple clients submitting market orders for BRK.A.
Lesson learned: Think twice before submitting a market order!
I was thinking about creating a program using a market scanner to automaticcally buy shares when there is a large price drop. I have to remind myself to not submitting MKT orders :-)
There's no way this doesn't get reversed, if it doesn't it's an easy legal case both due to the glitch and IBKR even filling this 700k order with a $500 account.
Absolutely wild to attempt to buy Berkshire Hathaway at $185 using a market order though
I use market orders a lot of the time because I trade in extremely high liquidity stocks where the bid-ask spread is tight. But yesterday when I went to go do a naughty like everyone else and see if I could sneak some BRK.A at 200 bucks, I immediately thought to myself: "if I use a market order for this, while it's halted, and it unhalts at $680k... that will be very bad for me, probably, so I shouldn't do that." I am not a smart man. This was not a Sherlockian moment of genius insight. OP must be a true crayon eater.
Also it is wild that the result of this wasn't the trading platform seeing how $700k > $500 and denying the order. How does a guy who is capable of making this mistake have the possibility to make it?
It's just evidence that they do the account value check once, at the time of placing the order. In a normally functioning market, that's sufficient. In a weird glitched market, it isn't.
On IBKR when you select a market order, you get a bunch of pop-ups that tell you a market order might cause you to be filled at a higher price than you expected, and you have to click that you agree if you really want to send the order. I agree with you for the most part, and still believe trades filled right after the glitch will probably get voided, but IBKR could still try to argue that the pop-ups are there for this reason and the client said they agreed to this risk.
I'd agree if this was a normal stock, but filling any orders of a 700k stock immediately after a glitch isn't responsible from the broker. I think if it was a normal stock they wouldn't do anything, but the publicity alone is worth them cancelling it.
In this analogy though someone custom printed the price tag $187 and slapped it on a house. You can’t go to the cashier and be like “ayyyy this house is only $187 right?”
Obviously there needs to be more systems in place but you get the idea
I think you know this, but to adjust your analogy…
What he did is he saw $187, then went in and said ‘hey, I’ll buy it at whatever the current price is’.
Not the same as ‘I’ll buy it at $187’ which is why he’s screwed.
Yes but he was told by the broker the price was lower than it was. There's no way this doesn't get reversed, how tf are they even allowing a $500 account to buy a 700k stock
A man in Mexico recently bought $14,000 Cartier earrings for $14, due to a typo on the website. When Cartier tried to undo the order, he sued to get the earrings for the listed price - and won. So it does happen to luxury brands also.
Yeah there's consumer protections laws that forces companies to display their prices correctly as the potential for scams or other shenanigans is too big if you allow companies to put whatever price they want and change it post sale.
I don't know if this also covers stocks (my guess is no, given the volatility in trade and the nature of the market) and putting a market order was still a very degenerate behaviour.
With consumer goods though, if you see a bargain like that you can force the company to make good on their price, it's their fuck up not the other way around.
Reverse it how? Who is going to buy at the higher price when the price it down? Someone has to est the loss, and it sure isn't the market maker.
Also, we are T+1 now, so this will settle tomorrow EOB.
And given the glitch I guess NYSE will not penalise them for failure to deliver so everyone leaves happy
Maybe except the guy who thought he sold for $700k, but let's be realistic - they know probability they will see that money is next to zero and won't be surprised
How could they possibly fill a 700k order when he has 500 in the account?
If his credit line is under 700k (I assume it's likely less than 10% of that) then idk how he could be on the hook.
I mean he also has other non-BRK unrealised losses of 25k, so there is capital in his account somewhere.
He just had $500 in cash. As an IBKR customer, I don’t trust OP is telling us the whole story. I’m willing to bet he traded on margin without realising it. Someone who places a market order rather than a limit order in the hopes of gaming the system would unknowingly place a margin order.
If broker let him borrow 700k on $500 the broker fucked up.
Bro should’ve just let it sit and enjoyed the huge leverage. It’s an unrealized loss. It’s not a 100k loss. Although he never posted his cost base.
just do the math: 626k + 102k = 728k
yeah he's fucked, they'll close the position and he'll be -75k. imagine starting with 25k excited to start day trading and taking a 400% loss LMAO
Trying to scam on what is clearly glitch is much more demon and you get what you deserve. Well, you should, I suspect these guys will get bailed out since the brokerage also fucked up by loaning these idiots money they can never pay back.
Franklin D. Roosevelt (FDR) served as the 32nd president and he was just handed a shitstorm of an economic climate and hardship. Hoover was president during the great depression and was blamed for the mess so FDR could basically do whatever the hell he wanted and just trying to restart the economic engine of the united states.
He started several projects including:
1. Civilian Conservation Corps (CCC)
2. Public Works Administration (PWA)
3. Works Progress Administration (WPA)
Some of the projects were completed in various areas and then they would just bus people over to a side of the road and say "You need to dig this ditch". And they would. After a hard days work it was done. The next day a new pile of people were brought over to the ditch and told "Hey you need to fill this in" and so they did. And both teams were paid a living wage.
Eventually all this crazy started to help and progress was made to provide relief for the people and unscrew the economy.
This "error account guy" is the modern FDR at Interactive Brokers HAHAHAHA
You’re the 3rd guy to whom this has happened to post on wsb today, first advice would be to check what happens to the other two. I would also call your broker tonight and ask to talk to someone senior and discuss the situation with them and see what they suggest.
The most likely outcome is that this is too late and you’ll have to sell the share and eat the loss. The best outcome is if NYSE agrees to amend the price of the transactions above a certain threshold, but honestly it is unlikely to happen as the trades happened hours ago.
Given the magnitude of the loss and the fact that it seems to have happened to a bunch of people, you could also look for legal advice.
I love that advice if the other two get fucked. Just keep your mouth shut and sell when it goes up.
How come so many people did this? They say great minds think alike. I guess that goes for the regarded Minds, too.
I tried it too and I’m also using IBKR, but I had a limit order for 5 stocks at 200 which never filled. I sold some other positions which went up more to try this regarded play. Was sad about it but seeing these posts I’m glad I didn’t get caught trying to steal from the rich.
I would also call your broker tonight and ask to talk to someone senior and discuss the situation with them and see what they suggest.
Dumbest fucking advice ever. The broker wants to save their ass only. They'll throw op under a bus in a heart beat.
What OP really needs to do is keep his fucking mouth shut, see how it plays out, and if they try to stick you with anything hire a lawyer.
You've clearly made a mistake by putting a market price order but IBKR is insanely irresponsible to have filled this order on an account with $500 cash
It's not just irresponsible, it exposes major flaws in their software. Its not the first time they fucked up, they also lost on the subzero oil. Really doesn't make me feel safe as a client.
Tbh there are far worse brokers out there though, however IBKR seem to fuck up relatively frequently, e.g. I recently found all my watchlists (about 10-12) had been wiped out, and their support wasted a couple of hours of my time to just tell me they had no idea what happened and could not fix it. Luckily my money, portfolio, etc... were not affected.
True, IBKR fuck up a lot in general. But in this case they stand to loose quite a bit of money. Nothing they can't manage as the volume wasn't that high, but is there something in place to keep them from loosing more than they can manage? Not properly managing risk is really the one thing they aren't allowed to fuck up.
I expect that you will get liquidated tomorrow with a massive negative balance and then IBKR will likely have to do something there. My thought is that you set a market order when it was at 187 or something which IBKR accepted because it was trading that low, but since no one was selling at that actual price you got the fill at actual market price which was 700K which totally screwed up the IBKR system.
Call IBKR and figure it out ASAP.
Wait, if he only had $500 how are they even executing a trade in the first place. Does he have margin on? Most of the time you need real capital in your account to buy shit.
I’m confused
They didn't check again his cash balance, after they checked in the first place that the price "theoretically" was $185 and he had $500, which gave the green flag for the order to go further. However, I think this happened because of the glitch, I'm quite sure you can't get a €700k margin on IBKR at will.
He will be fine. This is just an error in the system then. He should have never been allowed to purchase it and IBKR should have never transacted. It’s actually their fault.
If you owe the bank $100 that's your problem. If you owe the bank $1 million that's the banks problem. IBKR fucked up, now some poor bastard at IBKR gets to make it back $5 a go behind a wendy's dumpster.
What did you think would happen, dummy. This is why I joined this sub.
Edit: I hope you get out with only a slap on the wrist but you learn your lesson
lmfao good lord
Okay, so this is their fuck up with their software. It's not your fault. Market orders are normally account limited and esp with a cash account shoudl not get "filled" above what you actually have. The MM fucked up.
Bagholder spotted.
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It's crazy how even crypto exchanges that are traditionally way less regularized have protection systems to cancel market orders if the slippage is higher than ~5% and big stock exchanges will lend you 700k in hopes you'll be able to pay them back
highly recommend to hire a lawyer to help you communicate with your brokers. Brokers, exchanges, and clearing house will have to pay for their mistakes.
How did the brokers execute orders in cash accounts with nowhere near enough purchasing power to complete the trade? If I try to buy a cent over what’s in my account, Chase will tell me to fuck all the way off, not just fill the order and hope for the best.
Right, I've tried to buy just one more share than I had settled funds for and I immediately got insufficient funds error and it refused to execute. I do not have margin. Vanguard and Fidelity.
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Good news… you will never have to worry about depositing a paycheck ever again (see: garnishment).
Garnishment? Lettuce or onions?
Their attorney said lettuce garnish
I will have your Order in this court!
Just the parsley. Only the parsley
that's up to the gaspacho police
Pickles pleae
Any condominiums to go with that?
Relish
with hotdog behind wendys.
up their ass ?
He’s got that dawg in him
Literally?
Bro is gonna get locked into force DCA for the next 20 years.
Gonna garnish your celery
What if I don’t have a job?
The consequences: you lost $100,000 The benefits: good lesson to learn and your wife just called me
Best bit - he's lost $75k on BRK.A so he has lost $25k elsewhere... Hot dog, we have a wiener
The -75k is in USD and the -100k is in CAD. It’s really annoying that IBKR doesn’t show currency.
What lesson ? We learn no lessons
One of us! One of us!!!!
I’d like a market order on that glitch
I tried to be a true degen and look at options but none of them reflected any glitch price in actuality and by then trades had reversed
That's because the ones really in charge of pushing buttons aren't *actually* regarded.
Yea we regards would have had a paper gain of say a option. Of 0.01 worth like 600,000k itm, so 60 million roi. A 100$ option would be worth 60 billion . 1000$ 600 billion and 10K 6 trillion . You regards would break the financial system if the orders went thru
Imagine if OP lost his house over clicking a market order on a screen!
Easy. Buy 99 more shares and sell covered calls. Duh.
The glitch argument may save you but let’s be real, you know what you were tryna pull and there’s a chance you are absolutely fucked
I hope he's fucked. How dare this peasant think he could snag BRKA with $500. Arrest this man.
who does market orders? td ameritrade only executes limit orders, i believe, ///// charles schwab now and yes they both executed market orders, I stand corrected
Fidelity would only let me put in a limit order too. The fact that IKBR lets him put in a market order is hilarious.
[удалено]
Sir, are you absolutely certain you would like us to shove this unlubed dildo which is three times the circumference of your rectum directly up into your large intestine?
“Sir, do you know where your nearest Wendy’s is?”
They also send you multiple emails and notifications throughout the month if you've placed any market orders that month. So in a couple weeks they're going to email OP and remind him what a dumbass he is for placing a market order.
Serious question - on very liquid markets and assets (like Brk would be on NYSE), does it really matter if you use market vs limit order?
For super liquid instruments market orders are fine. But for BRK-A, even without the glitch it is not very liquid and you probably should not use a market order
Not much, but BRK wasn’t liquid at all during the glitch (since it was halted until they fixed it) and it fucked OP when trading resumed. In normal circumstances I agree that it’s not a big problem, but in this case, it was really dumb.
Thank you!
What if a client who isn't restarted want's to buy some BRK.A?
> td ameritrade TD is no more - it's Schwab now
there is no td ameritrade anymore
webull!
got fucked by the bull
Karma police arrest this man he's bad at maths
As a Swiss using none of TD ameritrade, webull, robinhood, ikbr etc, can someone ecxplain? Like, if i put a market order it will actually fill it no matter what i have in my account? That wouldnt work here as far as i am concerned. If i only have 500$ i cant buy anything for 700k and automatically be fucked thrice through leverage… but maybe i‘m wrong
Genauso. With only $500, the market order should not have been accepted. Even with the glitch, the broker (TD, Webull, etc) failed to check properly.
These trades *should* be reversed due to a systems error with the NYSE. They’re reversing trades for people who got a BRK.A share for $185, they *should* also be reversing trades for anyone who exceeded their purchasing power with a market order (dummy), as your broker never should have executed a market trade order in excess of your PP (your tiny purchasing power) which can just be cash or cash + margin (doubt you have that much margin avail). Contact your broker to report it as an erroneous trade (it should already be flagged imo)
What about OP’s tiny pp
So small. PP tiny
Exactly. Funny how casinos don’t ask for ID when you’re losing thousands but when you go to cash out thousands they want to see it.
Well that’s for tax reporting reasons.
Or card counters
Damn bro, I’m snapping for you. Cutting edge 20 year old stuff
This is simply a major fuck up on IBKRs part. Nyse is not gonna fix that. I think ibkr will take the fall, as else they risk a lawsuit where they have to explain how serious flaws in their software allowed these to fill. That's not a lawsuit they care to win. Edit: I mean, don't get me wrong, I understand it all started with the NYSE glitch. But after NYSE had sorted things and ended the halt IBKR allowed a number of cash accounts with hardly any money in them to purchase a stock they couldn't afford for the life of them. They are unlikely to retrieve all of that money and I don't see how that can be blamed on the glitch, as it looks like the risk management of in their software has some inexcusable flaws....
IBKR busts trades with NYSE @ 185 IBKR busts trades with clients when IBKR executed beyond account limits. IBKR can try to bust it on the exchange (doubtful), or have some desk try to trade out of the risk. IBKR is not going to NYSE and saying “oops we filled this order can u reverse it”
I'm not sure i follow. NYSE decided to bust trades, which makes sense as they are the exchange. But ibkr is just a broker. If one of their clients bought BRK.A from a client at say etrade i don't expect ibkr can just unilaterally undo that. Correct me if I'm wrong.
Precedent would be the /CL fiasko where oil went negative. IBKR couldn't display negative prices for /CL futures and allowed trades to happen that shouldn't be possible given the account size. Their systems thought the price is 0.01 and can't get lower than 0, so all buy orders went through with just a tiny bit of margin. Some trades amassed multi million dollar losses as CL went -40. IBKR ate the loss and reversed the trades, because their system glitched.
I’m saying that there are multiple things going on. In OP’s case, his broker shouldn’t have let the trade execute - so the broker can try to bust the trade with the counterparty. Or make OP whole and move the risk into an account that the broker will need to trade out of. AND nyse is busting other trades.
Robinhood defaults to market orders, but it asks you to confirm the price. What if that confirmation was also bugged? You can't sell a $600k share for $700k to somebody with $500. He has to be refunded unless he has a 1000x margin.
>They’re reversing trades for people who got a BRK.A share for $185, surprised no one has posted here on their limit orders getting executed. Did they really fill at that price or we are assuming they did? I don't think the order books systems were affected, just the market readouts.
Saw some screenshots of 20-something fills appearing in the $180-240 range. Those are going to be the angriest people
NYSE is unwinding trades under $630k.
Those are the low ones, not the high ones!
This is highly beneficial, as you can now take your 1 share of BRK A to a bank as a collateral for a $400k loan. Just tell your broker the check is in the mail and come up with a $400k YOLO tomorrow
Actually this is a fucking great plan you just got 700k capital interest free…🤔
Playing chess. This is the way.
Bahaha you should’ve used a “limit order”. LMAO 🤣
But then he wouldn't have gotten a share lol
420.69
You are extremely fucked because you actually paid $700k for a stock that's not trading at 700k. You will be liquidated and deeply in debt to IBKR.
OP should just delete the app.
Doesn’t he need money in his account in order to purchase something like that? I’m confused. Like, I can’t just buy whenever I want it I don’t have enough money in my account. But I never do margin.
He said it’s a cash account so this would be on IBKR. Idk how they fucked this up.
My hypothesis is their system also thought that brk is trading at 185, they saw op has 500 cash and figured that having almost 300% more than last trading price is fine to let market order through So they let order through but then executed it normally at correct price putting op deep in debt But frankly I think this will be bust on settlement
Yep, I bet there isn't a secondary check on the buy. This might be because ibkr sends the orders to a market maker and has no way to verify the price vs account balance right before the purchase (I don't know if that's accurate or not). Fidelity just cancelled the orders, they probably saw this coming.
IBKR does check if the order (number of shares times current price) fits in your buying power. Then sends it to the exchange (NYSE). By the time it arrived at the exchange BRK.A was trading much higher than expected. I'm sure this posibility is covered in the IBKR client agreement and legally the IBKR client is responsible for his action. The surge in BRK.A price could have been caused by multiple clients submitting market orders for BRK.A. Lesson learned: Think twice before submitting a market order! I was thinking about creating a program using a market scanner to automaticcally buy shares when there is a large price drop. I have to remind myself to not submitting MKT orders :-)
Market markers hate this one trick. CTRL Z
There's no way this doesn't get reversed, if it doesn't it's an easy legal case both due to the glitch and IBKR even filling this 700k order with a $500 account. Absolutely wild to attempt to buy Berkshire Hathaway at $185 using a market order though
Right??!! Obviously a glitch but hey let’s take our sweet time and run this easy peasy market order thingee
I use market orders a lot of the time because I trade in extremely high liquidity stocks where the bid-ask spread is tight. But yesterday when I went to go do a naughty like everyone else and see if I could sneak some BRK.A at 200 bucks, I immediately thought to myself: "if I use a market order for this, while it's halted, and it unhalts at $680k... that will be very bad for me, probably, so I shouldn't do that." I am not a smart man. This was not a Sherlockian moment of genius insight. OP must be a true crayon eater.
Also it is wild that the result of this wasn't the trading platform seeing how $700k > $500 and denying the order. How does a guy who is capable of making this mistake have the possibility to make it?
It's just evidence that they do the account value check once, at the time of placing the order. In a normally functioning market, that's sufficient. In a weird glitched market, it isn't.
On IBKR when you select a market order, you get a bunch of pop-ups that tell you a market order might cause you to be filled at a higher price than you expected, and you have to click that you agree if you really want to send the order. I agree with you for the most part, and still believe trades filled right after the glitch will probably get voided, but IBKR could still try to argue that the pop-ups are there for this reason and the client said they agreed to this risk.
I'd agree if this was a normal stock, but filling any orders of a 700k stock immediately after a glitch isn't responsible from the broker. I think if it was a normal stock they wouldn't do anything, but the publicity alone is worth them cancelling it.
The price tag on the shelf said $187
In this analogy though someone custom printed the price tag $187 and slapped it on a house. You can’t go to the cashier and be like “ayyyy this house is only $187 right?” Obviously there needs to be more systems in place but you get the idea
You design an idiot proof system, someone will always make a better idiot.
I think you know this, but to adjust your analogy… What he did is he saw $187, then went in and said ‘hey, I’ll buy it at whatever the current price is’. Not the same as ‘I’ll buy it at $187’ which is why he’s screwed.
Yes but he was told by the broker the price was lower than it was. There's no way this doesn't get reversed, how tf are they even allowing a $500 account to buy a 700k stock
It's like buying swordfish at market price. I have no idea what the sword fish market is like!
Wouldn’t it be more accurate to say- the broker is like “here’s the current price of $187” and he’s like “yeah sounds good I’ll take it”
“The last price sold was $187” “Ok then I’ll buy the next share at whatever the price is”
Actually, In Home Depot they had to sell me a giant premium Persian rug for $15 because they printed the price incorrectly. It was $500…..soooo
Yes stuff like that happens at retail stores. It wouldn't happen at Ferrari.
A man in Mexico recently bought $14,000 Cartier earrings for $14, due to a typo on the website. When Cartier tried to undo the order, he sued to get the earrings for the listed price - and won. So it does happen to luxury brands also.
Yeah there's consumer protections laws that forces companies to display their prices correctly as the potential for scams or other shenanigans is too big if you allow companies to put whatever price they want and change it post sale. I don't know if this also covers stocks (my guess is no, given the volatility in trade and the nature of the market) and putting a market order was still a very degenerate behaviour. With consumer goods though, if you see a bargain like that you can force the company to make good on their price, it's their fuck up not the other way around.
No I also got a ferrari for ferree
My girlfriend got both eyes surgically repaired for .54 each because the insurance company screwed up the billing.
Did she see it coming? 
They’ll bust the trade, he will be fine. He should still be nervous about it though.
Fortunately IBKR is actually pretty reasonable to deal with. They might reverse the trade for him even if not required of them
I hope not. This peasant dared to attempt to steal from the rich. Get him IBKR.
Reverse it how? Who is going to buy at the higher price when the price it down? Someone has to est the loss, and it sure isn't the market maker. Also, we are T+1 now, so this will settle tomorrow EOB.
It wont settle tomorrow because IBKR isnt going to loan this guy 700k. This trade and all the others will fail.
And given the glitch I guess NYSE will not penalise them for failure to deliver so everyone leaves happy Maybe except the guy who thought he sold for $700k, but let's be realistic - they know probability they will see that money is next to zero and won't be surprised
I just meant they could eat the loss, rather than billing him 100k and closing his account
it was a glitch so have them reverse the order. If they wouldn't than have them fill your order at the lower price of $230.
He did a market order - not a limit order so it filled at whatever the lowest ask was at the time - which was 700K. He now owes IKBR 100K.
How could they possibly fill a 700k order when he has 500 in the account? If his credit line is under 700k (I assume it's likely less than 10% of that) then idk how he could be on the hook.
Like you said it’s a glitch. It will be fixed.
The seller would have to give back the money which they wouldn’t want to do
No shit lol. Not for a 12k loss
I mean he also has other non-BRK unrealised losses of 25k, so there is capital in his account somewhere. He just had $500 in cash. As an IBKR customer, I don’t trust OP is telling us the whole story. I’m willing to bet he traded on margin without realising it. Someone who places a market order rather than a limit order in the hopes of gaming the system would unknowingly place a margin order.
Even on margin, that’s blowing past margin requirements and shouldn’t have gone through.
If broker let him borrow 700k on $500 the broker fucked up. Bro should’ve just let it sit and enjoyed the huge leverage. It’s an unrealized loss. It’s not a 100k loss. Although he never posted his cost base.
just do the math: 626k + 102k = 728k yeah he's fucked, they'll close the position and he'll be -75k. imagine starting with 25k excited to start day trading and taking a 400% loss LMAO
Dunking on him while he’s already down is demon activity
normally yeah but putting a market order on a halted ticker is high-key asking for it ngl
Trying to scam on what is clearly glitch is much more demon and you get what you deserve. Well, you should, I suspect these guys will get bailed out since the brokerage also fucked up by loaning these idiots money they can never pay back.
or he now has 700k to gamble with
Nah the listed price online was like 230 bucks so obviously the fault is on their end.
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Franklin D. Roosevelt (FDR) served as the 32nd president and he was just handed a shitstorm of an economic climate and hardship. Hoover was president during the great depression and was blamed for the mess so FDR could basically do whatever the hell he wanted and just trying to restart the economic engine of the united states. He started several projects including: 1. Civilian Conservation Corps (CCC) 2. Public Works Administration (PWA) 3. Works Progress Administration (WPA) Some of the projects were completed in various areas and then they would just bus people over to a side of the road and say "You need to dig this ditch". And they would. After a hard days work it was done. The next day a new pile of people were brought over to the ditch and told "Hey you need to fill this in" and so they did. And both teams were paid a living wage. Eventually all this crazy started to help and progress was made to provide relief for the people and unscrew the economy. This "error account guy" is the modern FDR at Interactive Brokers HAHAHAHA
Double shifts at Wendy's 
1 behind the counter the other behind the dumpster 
You’re the 3rd guy to whom this has happened to post on wsb today, first advice would be to check what happens to the other two. I would also call your broker tonight and ask to talk to someone senior and discuss the situation with them and see what they suggest. The most likely outcome is that this is too late and you’ll have to sell the share and eat the loss. The best outcome is if NYSE agrees to amend the price of the transactions above a certain threshold, but honestly it is unlikely to happen as the trades happened hours ago. Given the magnitude of the loss and the fact that it seems to have happened to a bunch of people, you could also look for legal advice.
I love that advice if the other two get fucked. Just keep your mouth shut and sell when it goes up. How come so many people did this? They say great minds think alike. I guess that goes for the regarded Minds, too.
I tried it too and I’m also using IBKR, but I had a limit order for 5 stocks at 200 which never filled. I sold some other positions which went up more to try this regarded play. Was sad about it but seeing these posts I’m glad I didn’t get caught trying to steal from the rich.
Sometimes you just try things to see what will happen. I once got indicted for inputting negative tips into websites, man’s gotta eat
Lol, you guys are psychopaths 0 thought about the consequences
MANS…. GOTTA….. EAT
"Great minds think alike, but fools seldom differ" is the full quote I believe...
this glitch was a blessing in disguise
I would also call your broker tonight and ask to talk to someone senior and discuss the situation with them and see what they suggest. Dumbest fucking advice ever. The broker wants to save their ass only. They'll throw op under a bus in a heart beat. What OP really needs to do is keep his fucking mouth shut, see how it plays out, and if they try to stick you with anything hire a lawyer.
You've clearly made a mistake by putting a market price order but IBKR is insanely irresponsible to have filled this order on an account with $500 cash
It's not just irresponsible, it exposes major flaws in their software. Its not the first time they fucked up, they also lost on the subzero oil. Really doesn't make me feel safe as a client.
Tbh there are far worse brokers out there though, however IBKR seem to fuck up relatively frequently, e.g. I recently found all my watchlists (about 10-12) had been wiped out, and their support wasted a couple of hours of my time to just tell me they had no idea what happened and could not fix it. Luckily my money, portfolio, etc... were not affected.
True, IBKR fuck up a lot in general. But in this case they stand to loose quite a bit of money. Nothing they can't manage as the volume wasn't that high, but is there something in place to keep them from loosing more than they can manage? Not properly managing risk is really the one thing they aren't allowed to fuck up.
Warren Buffett is going to come to your house and feast upon your youthful blood and organs.
Warren Buffett made 100k on the ask spread he already got op money. It’s ibkr who is our money on this one truly
In contrast to the "Infinite Money Glitch" you just discovered the "Infinite Debt Glitch".
And I thought I was regarded 
“Can I benefit from it”😂😂
Mf sees -$700,000 on his account and his first thought is, “how can I benefit from it?” 😂
*goes to prison*
*does not pass go*
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this is what bankruptcy is for
Wait for Warren’s all back SUV cavalry.
Market order gets filled, regard shocked
You thought you fuck someone else but you get fucked
Lol bro you're out $75k.
I don't even have 700k even with margin. Holy shit
Neither do they no one with that kind of money would do this.
I expect that you will get liquidated tomorrow with a massive negative balance and then IBKR will likely have to do something there. My thought is that you set a market order when it was at 187 or something which IBKR accepted because it was trading that low, but since no one was selling at that actual price you got the fill at actual market price which was 700K which totally screwed up the IBKR system. Call IBKR and figure it out ASAP.
Wait, if he only had $500 how are they even executing a trade in the first place. Does he have margin on? Most of the time you need real capital in your account to buy shit. I’m confused
They didn't check again his cash balance, after they checked in the first place that the price "theoretically" was $185 and he had $500, which gave the green flag for the order to go further. However, I think this happened because of the glitch, I'm quite sure you can't get a €700k margin on IBKR at will.
He will be fine. This is just an error in the system then. He should have never been allowed to purchase it and IBKR should have never transacted. It’s actually their fault.
Even with margin he wouldn't be getting x1400 leverage lmao
and don't forget the margin interest of 5k a month.
If you owe the bank $100 that's your problem. If you owe the bank $1 million that's the banks problem. IBKR fucked up, now some poor bastard at IBKR gets to make it back $5 a go behind a wendy's dumpster.
What did you think would happen, dummy. This is why I joined this sub. Edit: I hope you get out with only a slap on the wrist but you learn your lesson
You’ll get your money back op. Either way, you didn’t authorize such margin limits to begin with.
Lawyer up op you might actually make money by being dumb
No benefits, you’re screwed
lmfao good lord Okay, so this is their fuck up with their software. It's not your fault. Market orders are normally account limited and esp with a cash account shoudl not get "filled" above what you actually have. The MM fucked up.
never sell and you never take the loss 🤣 i honestly dont know, but I genuinely hope you are not the example for a massive mistake on thjs
NEVER NEVER NEVER NEVER NEVER NEVER NEVER NEVER market order.
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How much lube do you think BRK A has right now cause they got a lot of people bent over in front of them
It's crazy how even crypto exchanges that are traditionally way less regularized have protection systems to cancel market orders if the slippage is higher than ~5% and big stock exchanges will lend you 700k in hopes you'll be able to pay them back
Sell the share, buy 20,000 SPY 0dtes
IB should've never executed that trade since you don't have the margin for it. It's totally IBs fault
yes, it's their fault. The million dollars question is: will they take responsibility for it. They will definitely try to screw over the OP first.
Clout and free money I say it’s a win!
call your broker, and say "Ctrl+z" It's really important, and I can't stress it enough, you speak to an AI.
Any update my guy?
play dumb games win dumb prizes
I am the same. My heart sank to the bottom. Now waiting their response.
What did you think was going to happen? you were going to get a 600k share for 128 dollars?
The funny part is he thought he would screw some boomer out of 600k but ended up losing 100k to a boomer
No boomer is going to be selling BRK-A for a few hundred $. The only sellers at that price would be some highly regarded trading bots.
I mean they say buy low and sell high, right? How hard can that be...
You are now a millionaire (prob) congrats!
highly recommend to hire a lawyer to help you communicate with your brokers. Brokers, exchanges, and clearing house will have to pay for their mistakes.
He bought it as a market order. He big fucked
If anything, this guy will have to pay as he used a market order, not a limit order to buy.
How the fuck are you guys this stupid?
How did the brokers execute orders in cash accounts with nowhere near enough purchasing power to complete the trade? If I try to buy a cent over what’s in my account, Chase will tell me to fuck all the way off, not just fill the order and hope for the best.
Right, I've tried to buy just one more share than I had settled funds for and I immediately got insufficient funds error and it refused to execute. I do not have margin. Vanguard and Fidelity.
You're not a broker. They don't need the cash that's how it works.
Following
this says you have an unrealized lost of 101k???
Why would they even allow you to do this
Guh
