IDS, Can you elaborate on this: "buying puts (shares subject to exercise are restricted)"? So can I purchase a put on a stock or ETF as long as I close it before expiration? Maybe I'm just dense, but I don't quite get it. Thanks.
Profunds and Rydex mutual fund families each have "Inverse" funds, suitable for IRA accounts, and even allow short term trading. Unfortunately, mutual funds are not part of IBs product offerings. http://profunds.com/ http://rydexfunds.com/index.cfm
I know. For the IRA, I'd like to trade stocks but also do some position trading with long and short positions in the S&P 500. Rydex and Profunds are perfect for this, especially since they have leveraged funds that tie up less capital. If IB offered Rydex or Profunds, they would be a no-brainer choice for my IRA. As it stands, however, I'm also considering MB Trading and even Scottrade. I also like OptionsXpress' offerings and platform, but not their commissions...
Yes, there is no IRA margin account. But it is possible to lose more than the amount of equity in your IRA account, and one thing the broker may do is take the money from another one of your accounts. http://elitetrader.com/vb/showthread.php?s=&threadid=51251
The dark green line at the bottom of the chart is the equity curve of professional short-sellers since 1993. It would take a whole book to cover the advantages professionals have over retail traders (for short selling). Despite securing every possible advantage available they still can't turn a profit shorting stocks. Do you expect to short stocks profitably? If so, why? If not, then what is your motivation?
Proshares just launched short-index ETFs. Neat concept, and I think these should be tradable in IB. Allows for hedging. http://www.proshares.com/funds
Thanks! That's perfect if you can trade this ETF in IB. I'll have to check into it. I appreciate the info.
Can someone from IB please explain this to me? If the max. contribution to an IRA is currently $4000 for an individual for 2006, how can it be legal to Short Stocks in an IRA. The bottom line, it is illegal to SHORT stocks in an IRA. Futures are another story.