Short Stocks in IRA MArgin Account?

Discussion in 'Retail Brokers' started by ewile, May 13, 2006.

  1. ewile

    ewile

    Hi,
    I have an IB Margin IRA account. It it possible to take short positions in stocks in such an account.
    Thanks!
     
  2. no
     
  3. You could short index futures. It might also be possible to short single stock futures....you might want to check on that though.

    OldTrader
     
  4. Never heard of it. Usually u can't have margin ability in ira account cause you would then have unlimited risk which is a big no no in ira's.
     
  5. nonam

    nonam

    I thought they made it possible to trade futures in an IRA.:confused:
     
  6. except for futures, yes, u can trade them, which i think is odd, but what do i know.
     
  7. ids

    ids Interactive Brokers

    Futures, including single stock futures are OK to trade on IRA. Please, do not confuse margin and performance bond requirements.
    From http://www.interactivebrokers.com/en/general/education/faqs/ira.php
    What can I Invest in?
    Stocks, covered call writing (covered shares are restricted), buying calls (funds equal to the aggregate exercise value of the long calls are restricted), and buying puts (shares subject to exercise are restricted), selling cash secured puts, spreads securities with European style expiration, futures contracts, and futures options. The IB IRA is structured as a Stock Cash Account (if you choose to trade only stocks) or as a Stock Options Level I Account (if you choose to trade options in your IRA). IRAs may also invest in US dollar denominated futures contracts, and future option contracts.
     
  8. Ebo

    Ebo

    No such animal!
    You can not have an IRA MARGIN account.

    They are lending you money, if you lose it, how can you repay it, since the account has a max contribution/year of $4000!
     
  9. ids

    ids Interactive Brokers

    1. There is no such thing as margin IRA. It does not mean that futures are prohibited. Futures do not require margin. There are only performance bond requirements in this world.
    2. Whatever is called sometimes "margin IRA" in IB has just a benefit of fast settlement of stock trades. Nobody is capable to borrow money.

    Winter, thank you for the correction.
     
    #10     May 16, 2006