Futures in IRA @ IB

Just checked my account type and got approved for futures, SSF and options on futures in my IRA @ IB. Now can trade both long and short there also.


Bert

 

How can it be? I thought IRA accounts cannot be margin.

 

The prohibition is on purchasing assets for an IRA with borrowed funds. When you purchase shares on margin, that is what you are doing - buying shares w/ funds borrowed from your broker.

When you post 'margin' on a futures position you are not borrowing funds but posting a bond as security against potential losses. There is no prohibition on futures per se, long or short, in an IRA.


The above copied from another post on ET.


Bert

 

Read through this closed thread for your answer:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=19307

Uni

 

Tried a trade, still getting reject, even though account looks approved.

 

I see the subtle difference. But as long as it is allowed who cares. All I want to do is trade, trade and trade some more.