I received an email yesterday stating that if there was a necessary margin call I would be contacted by email. I immediately called optionsxpress to find out if I needed to send money or if I would be contacted as stated in the letter. The representative told me to go by the letter and that if it said I would be contacted by email it would happen. To my dismay, an hour later optionsxpress liquidated my position.
After the margin call occurred, I called optionsxpress and spoke to Peter Ramirez who told me the market was reacting to fast and they felt that liquidating my position was the best thing to do. So now I'm out a minimum of $25,000 dollars. I trade for a living. Not only does this cripple my finances by it jeopardizes my employment.
Optionsxpress made an illegal margin call and tried to justify it with fear and panic. According to a written letter from them entitled, Notice of Change in Margin Requirements, the letter states, this change may result in a margin call, if so you will receive a separate e-mail notification. I have records the can be subpoenaed showing there was no email notification. I even contacted them prior to make sure I would be notified and not liquidated from my position. Hours later my position was liquidated. I can only base my trading on the accuracy of the information they provide.
If they are providing misleading and erroneous information then regulatory and legal action must be taken. Even worse, they sent me a fraudulent email later that evening saying that there was going to be a margin call and that I needed to deposit $1,500 in my trading account to avoid a margin call. All this took place hours after the margin call happened.
Classactionoptionsx
Sugar Land, Texas
U.S.A.
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