I just found out that I can't buy US ETF's using Interactive Brokers: https://www.europarl.europa.eu/doce...=Since 2018, ordinary investors in,US ETFs)(1). So far I only traded individual stocks and options but it never occurred to me that I might be prevented from buying ETFs due to some stupid bureaucratic regulation. But anyway, it looks like it's entirely possible to trade (buy or sell) options on the restricted ETFs. WTF?! For buying them, at least I can choose not to exercise and just close the option if in the money. But what if I sell an option and being American type, the buyer decides to exercise. How does this work? I'm supposed to buy the ETF and deliver it to them? Will the broker do it and just ca$h-settle with me? I don't want to experiment and have my account suspended or something, would just like to understand if it's possible and what are the risks.
when you are assigned you just long or short the stock. So IB won't close them for you. You are allowed to close the position yourself.
So I'm assigned and I long (buy) the ETF. But by rules, I can't buy the ETF! And yet, I find myself owning the ETF although I'm not supposed to?