Short Stocks in IRA MArgin Account?

Hi,
I have an IB Margin IRA account. It it possible to take short positions in stocks in such an account.
Thanks!

 

no

 

You could short index futures. It might also be possible to short single stock futures....you might want to check on that though.

OldTrader

 

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.

 

I thought they made it possible to trade futures in an IRA.

 

except for futures, yes, u can trade them, which i think is odd, but what do i know.

 

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.

 

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!

 

$4000 is the limit for a traditional or Roth IRA

BTW ids, the contribution limits shown on this table on IB's site (http://www.interactivebrokers.com/en/accounts/iraClasses.php#contributionLimits) for SEP-IRA are wrong for 2006, it goes up to $44k.

Ref: http://www.irs.gov/retirement/article/0,,id=111419,00.html

 

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.