Could someone please tell if FX options traded on ISE and PHLX (like FXE or EUU) which arent really options on FX spot but some kind of ETFs I think.... Are they under the US day trading pattern rule i.e. you have to have 25K balance to be able to trade more than once a week?
Just found on old good wikipedia: "A FINRA (NASD) rule that applies to any customer who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period; the rule applies to margin, but not to cash accounts." if you buy options you are surely use cash not margin... so why is this rule applies on the options in first place?
You need a margin account to trade options. The fact that you pay the full premium when buying options is irrelevant.
EUU is quoted on ISE as an option symbol.... may be this is how it works on practice - brokers open you a margine account anyway for their own reasons. but technically speaking - you are buying an option contract and pay outright. you dont need margin to get long in options, do you? you buy a piece of paper effectively.
No, you don't need margin to buy an option, but, as I said, option trading is done in a margin account, period.
You can also trade options in an IRA cash account. No PDT rule to worry about, but you have to wait a day or two for a closing trade to clear before you can use its proceeds.
I dont live in the US. no idea what IRA is. Irish Republican Army? are they giving away cash? Nice. whats their phone number?