Quote:
Originally Posted by Sideline
Can someone explain this one a bit more to a noob. I assume he had to be buying with margin. At some point he got margin called by the broker who sold all his contracts at a huge negative price? If had just bought them in a cash account he could have just held them and sold them once positive again no?
Edited to add: I assume they expired EOD?
1. The guy didn't know what he is trading.
2. Normal option contract become worthless when reach 0.
3. Oil option contract can go to Negatives number.
4. Oil option contract mean you have to take delivery if you hold the contract
When it expire or paid a fines.
5. IB are stupid because their software did allow to show negatives number.