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Question regarding the legitimacy of my trade


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  #1 (permalink)
tlulu
Ho Chi Minh City, Vietnam
 
Posts: 1 since Nov 2019
Thanks Given: 0
Thanks Received: 0

Here is the situation:
I currently use Amp as my brokerage together with Rithmic for data
Today, I went long 3 ES put debit spread, they are 4195/4200 PDS that I bought this morning to 1.1pts each.

After the close and reopen, I noticed that my position was liquidated by Amp's risk program. It does not end there, how they liquidated those contracts, they bought back the short leg at a MUCH more expensive cost then selling the long leg, which completely invalidate the premise of a long debit spread where max risk is already capped.
If you see the picture attached, their liquidated cost me a loss over almost 14 points per contract, when my MAX loss was 1.1pts that I already paid. What's even funnier is that my PDS was very comfortably in profit at almost 100% due to the selling we saw today.
They referred me to their risk disclosure agreement that I accepted to enable options on futures, which even states that they only do not allow naked short options (net short), not when it is a part of a spread strategy. Here is the link:
I intend to dispute this but just want to be clear that nothing I had done goes against this agreement correct? I intend to stay level minded but this is so absurd.
Additionally, the liquidation also liquidated several long positions that I had started to accumulate but they were all paid for and never at risks for liquidation.

Edit: apparently I cannot post a link yet so here is an alternative:
clients.ampfutures.[]com/options-risk-disclosure-statement-activation-request
Remove the []


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  #2 (permalink)
 
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 forgiven 
ashville NC
Market Wizard
 
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tlulu View Post
Here is the situation:
I currently use Amp as my brokerage together with Rithmic for data
Today, I went long 3 ES put debit spread, they are 4195/4200 PDS that I bought this morning to 1.1pts each.

After the close and reopen, I noticed that my position was liquidated by Amp's risk program. It does not end there, how they liquidated those contracts, they bought back the short leg at a MUCH more expensive cost then selling the long leg, which completely invalidate the premise of a long debit spread where max risk is already capped.
If you see the picture attached, their liquidated cost me a loss over almost 14 points per contract, when my MAX loss was 1.1pts that I already paid. What's even funnier is that my PDS was very comfortably in profit at almost 100% due to the selling we saw today.
They referred me to their risk disclosure agreement that I accepted to enable options on futures, which even states that they only do not allow naked short options (net short), not when it is a part of a spread strategy. Here is the link:
I intend to dispute this but just want to be clear that nothing I had done goes against this agreement correct? I intend to stay level minded but this is so absurd.
Additionally, the liquidation also liquidated several long positions that I had started to accumulate but they were all paid for and never at risks for liquidation.

Edit: apparently I cannot post a link yet so here is an alternative:
clients.ampfutures.[]com/options-risk-disclosure-statement-activation-request
Remove the []

change brokers


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