Futures, options, options on futures, etc, are agreements or contracts. Hence, shorting does not involve borrowing. However, you do need a counterparty, who agrees to deal with you, and assumes the corresponding risks. Does an insurance company need to borrow an insurance policy from someone else, before selling you one?
omcate thank you for the reply but I'm not sure who/what you mean by a counterparty .... Ex. I want to do a put spread on an option on ES..am I not long/short?
the point I was trying to get to is that in a spread (defined risk) I am short which at IB you cannot be in an IRA...no? My understanding is that at IB you cannot sell premium (uncovered by stock) which would include selling futures? I'm afraid I don't know enough to even ask an intelligent question
Aardvark, You can take any futures and futures options side or spread on IRA or a regular account. You do not own/borrow anything been long or short. You are just entering an obligation contract. Of course, the Clearing House as a counterparty of all deals does require a guarantee that you will be able to fulfill your contract. On behalf of the Clearing House, your broker imposes performance bond requirements on your portfolio. There are no restrictions except your money. It is a bit simplified picture of course.