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?


  2. gkishot


    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 and found what I was looking for.