Q: I trade options at my online broker. A bad trade yesterday that cost me $8000.00 due to a mistake by my broker.
I made an options call purchase on the 16th at market price. The seller was asking .20 cents per contract (100 shares) After putting in several limit orders in for up to .24 cents that were rejected I put in a market order which normally fills within a percent or so of the asking. When my order was filled it was at $4.20 for 20 contracts for a cost of $8260.00. It should have been in the neighborhood of $460.00.I was billed for $8000.00. Apparently this is legal. What is not legal is that my broker allowed the order to go through. It says very clearly on their web-sight that the buyer must have 100% of the cost of the trade in their account for the trade to go through. I had a little over $4000.00 in my account yet they allowed the trade to go through leaving me with a $4000.00 negative balance. I told them that it was their responsibility to reject the trade due to insufficient funds which they have on at least 20 or more trades in the past. So we are at an impasse. Need help. Thanks
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