Shorting my IRA...why not?

Discussion in 'Trading' started by traderdon56, Feb 11, 2006.

  1. Can anyone tell me why I can't sell stocks short in my IRA? I know it's an FTC rule, but what's the reason behind the rule?

    Thanks-

    Don
     
  2. Because trading on margin is not allowed in IRA accounts. In other words no borrowing - only trading with your own money. After all this is a retirement account & trading with borrowed money is considered to be too risky strategy.
     
  3. nkhoi

    nkhoi Moderator

  4. Thank guys. I went to Investopedia.com and found what I was looking for.

    Don-