Option Margin Definition

Best Online Brokerage For Options Trading On Margin (Vertical Spreads)

Hey Guys,
Which Online Brokerage is best for Canadians in terms of Options trading via vertical spreads? I am still learning/studying options trading and I understand I would need a margin account to carry out spreads. I won't be jumping in yet but I do want to know what the best option is for when I do. I am looking for a brokerage that has cheap commissions and reasonable minimum account bal (to qualify for Margin). Is Interactive Brokers the best we have access to (around $1 per contract, no assignment fee and minimum $2000 USD for margin)?
submitted by xChainfirex to CanadianInvestor [link] [comments]

500% interest on margin after trading options?

I’ve never used Robinhood for options trading and I thought I’d give it a go on a bet on ford with the bronco announcement Monday. After doing that I look at my gold profile to see how that affected my margin and noticed that it now says my interest rate is 500%. Like wtf is that accurate?
[Update: just a glitch on the phone app. Shows up up at 5% on the web version]
submitted by AntinousQ to RobinHood [link] [comments]

Broker for CSPs and CCs

I have been selling CSPs and CCs using my Robinhood gold account, but I would prefer to keep these trades separate from my stock shares and other option positions. I’ve been on the search for a broker that works well with my trading strategy with minimal fees, but I have not been very successful. Is there a broker that allows options trading on margin, has no per-leg or contract fee, and has no (or very little) assignment fee? From what I have seen you either have to choose no fees or no options trading on margin. I do not want my premiums to be wiped out by having to pay a fat $20 assignment fee.
Update: I decided on TOS. Thank you all for your advice.
submitted by BullInABearMarket to thetagang [link] [comments]

500% interest on margin after trading options?

submitted by StockThotz to StonkFeed [link] [comments]

Theta Gang and selling Options does not always work. I’ve lost $20k since 2018 and $3k in a month and even had a margin call. When you try to actively trade the markets without an edge, on a long enough timeline your expected return is $0.

Theta Gang and selling Options does not always work. I’ve lost $20k since 2018 and $3k in a month and even had a margin call. When you try to actively trade the markets without an edge, on a long enough timeline your expected return is $0. submitted by justathrowawaybro1 to options [link] [comments]

Hi, this morning I lost $172k trading options on my $5k trading account. I was also hit with $46k margin call (Images inside)

Good Morning, Today I woke up around 5am bc a option spread I had placed was exercised against me.
This resulted in my owing ($172k) worth of Amazon stock. My trading account was only worth around 5k at the time.
Robin hood also hit me with a $46,278k margin maintenance call.
https://imgur.com/N1XLymh
https://imgur.com/uJUTxKb
https://imgur.com/4S9RYOJ
edit*** I posted this in the main wallstreetbets daily but was asked to create it's own post, which is why it says deleted. I deleted the post because I was concerned staff at robinhood would find out I owe them almost 200k and do something to prevent me from trading again. I was also concerned that the US government would use this to prevent me from getting credit in the future, using a screening tool not disclosed to the public.
Update** Robinhood has not threatened to sue or take legal action against me yet if I do not pay. I informed them that I will use my $1k worth of CHEGG stock towards the margin call.
https://imgur.com/TCQvYGI
Update2** I have transferred $120USD to show robinhood I do intend to make small payments overtime. In case any lawsuit comes up. This combined with the $1k worth of CHEGG stock which robinhood THEMSELVES offered to accept is proof of my intention to make payments.
I will continue to update this in case this happens to any of you. So that you will be able to see the time-line of events and prevent this from happening again.
For those of you wondering - This was the notification I got early this morning. This was on top of the 170k.
https://imgur.com/Co8biSm
Update** After talking via email(robinhood won't contact you over the phone). Robinhood has given me the spread leg worth of Amazon stock to sell back to the market.
I have sold the stock back to the market and am now letting the opposite leg of the spread ride to see If I can make it back into a profitable position during power hour.
**Update if Amazon closes above $1,600USD I will be okay. If not I'll have to pay $2000USD to avoid a continued margin call
***Update Robinhood contacted me and was very helpful. I was assigned $ONE HUNDRED AND SEVENTY-SIX THOUSAND DOLLARS to pay. The broker actually gives you the opportunity to decide how you want to pay. This is called legging out instead of flatly closing both sides of the trade, which can be beneficial is some trading strategies.
This all started with a Yolo recommendation from another WSB redditor. Unfortunately, due the time I closed out of each leg I still lost roughly $2k.(I think I'm still not sure yet) Which is about 50% of my $5k account.
On Monday I will update everyone whether or not I'm still under a margin maintenance call. If not I should still have about $2k or $3k left. Anyone have any ideas for a good yolo?
submitted by Johnnyy29 to wallstreetbets [link] [comments]

Uber gets no love on here.

All I hear is Tesla this, space that. I cant afford tesla shares, and space is on a crazy run I'm scared to buy. You guys will just start losing money if I buy. But Uber gets no love on here and y'all retards could have been eating tendies on your yacht from the gains. Especially with your crazy options trading on margin with money you dont have. Uber the other day was up 30% in my portfolio, been buying since the 28 days. You guys love companies that dont turn profits, uber may be out of that category soon. After patching the wound uber eats left they should be able to turn a profit. And flying taxies everyone, let's fly to work. It's the fucking future you autist.
submitted by Jimbob67123 to wallstreetbets [link] [comments]

Can you trade options on Questrade from a TFSA account or do I need a Margin account?

submitted by SundownSynergy to CanadianInvestor [link] [comments]

Looking for extremely high risk/reward investments with relatively short payoff times.

I'm trying to find investments that can offer 3X to7X returns in around two years time. Ideally these would be in thinly traded markets and would require an investment of under $100K per deal.
Ideally the type of deal would be something that is repeatable and benefits from developing skill in an area but the market is small enough, local enough or otherwise thinly traded such that there is a potential edge for someone who is willing to put in the work.
This rules out things like retail options trading on margin and it also rules out angel investing (the timeframe to eventual payout is too long).
Flipping houses is one possible type of investment that I'd consider but I'm wondering if there are others that meet the criteria that I'm looking for. Note that I'm not looking for a completely passive investment here - I'd be willing to put in the work required in on each deal to maximize profit potential.
Any suggestions other than real estate?
submitted by Deathspiral222 to investing [link] [comments]

Theta Gang and selling Options does not always work. I’ve lost $20k since 2018 and $3k in a month and even had a margin call. When you try to actively trade the markets without an edge, on a long enough timeline your expected return is $0.

Theta Gang and selling Options does not always work. I’ve lost $20k since 2018 and $3k in a month and even had a margin call. When you try to actively trade the markets without an edge, on a long enough timeline your expected return is $0. submitted by justathrowawaybro1 to thetagang [link] [comments]

Opened a Schwab account in light of the Robinhood shitshow this week. Declined both Options and Margin trading. Schwab still did a hard credit inquiry on my account. Is this normal?

Seems extreme to put a hard inquiry on my credit history just for opening a very basic brokerage account where I'll be holding market and industry ETFs.
submitted by thebabaghanoush to Schwab [link] [comments]

Cash account help! So on TD I applied to change my account to cash only so on TOS I can make unlimited day options trades with settled funds... why does it say standard cash but margin enabled? Does it still need time to apply?

submitted by OptionsDaddyy to tdameritrade [link] [comments]

Selling Options Purchased with Margin on E-Trade

Can options purchased on E-Trade using margin be sold on the same transaction day, or are there time limits in place, per E-Trade and/or the SEC?
submitted by Boberts227 to options [link] [comments]

SynchroBit users will be able to trade a diversified range of digital assets portfolios in various ways, including trading based on binary options, margin, features, etc. #SYNCHROBITICO https://snbtoken.io/

SynchroBit users will be able to trade a diversified range of digital assets portfolios in various ways, including trading based on binary options, margin, features, etc. #SYNCHROBITICO https://snbtoken.io/ submitted by ShaibuDestiny to CryptoNews [link] [comments]

Margin Trading Options and Market Data Expand for XRP, ETH, XLM and LTC on Binance, OKEx and Poloniex

Margin Trading Options and Market Data Expand for XRP, ETH, XLM and LTC on Binance, OKEx and Poloniex submitted by n4bb to CoinPath [link] [comments]

Major Crypto Exchange OKEx Adds NEO Margin Trading Pairs...against Bitcoin (BTC) or Tether (USDT) on margin with a 3x leverage option.

Major Crypto Exchange OKEx Adds NEO Margin Trading Pairs...against Bitcoin (BTC) or Tether (USDT) on margin with a 3x leverage option. submitted by jeffyal to NEO [link] [comments]

My boss and I talked about opening a shared ib account, getting portfolio margin and utilizing option pricing inefficiencies for arbitrage opportunities. Only risk in any trade would be a failure to deliver on behalf of the broker. My question is with portfolio margin...

Can anyone tell me if that’d even count toward buying power once the full trade is locked in? Or can i essentially just repeat it until the price is back to efficiency?
submitted by antifrgl01 to wallstreetbets [link] [comments]

what online trading site would you recommend for someone with a few thousand dollars. I would like to be able to invest on margin, with options etc? Low fees are obviously a plus too.

submitted by all-it-takes-14 to personalfinance [link] [comments]

Effective strategy for 2-month simulation starting with 500k?

I'm participating in a market simulation game that will go until December 2nd. In my real investments, I usually hold ETF's and focus on the long term, but for this game, it's a much shorter time period and there is more starting capital.
The game is hosted on Investopedia with $500k to start, there are commissions, and options, trading on margin, and short selling is allowed.
Any advice for investment strategies or ideas to help me get started? I have fundamental understanding of finance.
submitted by retrac1324 to investing [link] [comments]

Best Referral Links: Margin Trade Bitcoin on Bitmex, Simplefx, Whaleclub, or Binance - use referral link to save on fees. High leverage options available!

BitMEX BitMEX is one of the best exchanges for day traders, offering up to 100x leverage for the BTC/USD pair and also altcoin pairs for ETH/BTC, XMBTC and many others.
Use my referral link to save 10% on fees for 6 months:
https://www.bitmex.com/registegbz1IA
Whaleclub
Whaleclub offers up to 20x leverage for the BTC/USD pair and up to 200x leverage for stocks and Forex.
Use my referral link for a 25% first deposit bonus:
https://whaleclub.co/join/nj2WV
Simplefx
Simplefx's secure platform offers up to 100x leverage for the BTC/USD pair and up to 500x leverage for stocks and forex. Very secure platform and professional support team.
Referral link:
https://simplefx.com/?sfx-r=87f74946-c8d7-4fe7-8b02-453eeb09a61d
Binance
Day Trade Bitcoin as well as dozens of altcoins and tokens on one of the best Bitcoin & altcoin exchanges out there. No margin trading available.
Referral Link:
https://www.binance.com/?ref=11071206
Thank you and happy trading!
submitted by angrybitcoin to bitcoinreferrals [link] [comments]

Why trade on margin and pay interest when options can achieve the same effect?

Or is there a hidden cost of options I'm not seeing?
submitted by offthewall1 to investing [link] [comments]

Received a T5008 from Questrade - how do I report this on my tax return?

Hi PFC,
Brand new to the stock market this year, and I shorted stocks, purchased options, traded on margin, and received dividends in both Canadian and American corporations.
I received a T5 already, but my questions are:
a) How do I report short sales that resulted in a profit, and a loss? Is this taxed as income or capital gains?
b) How do I report options that expire worthless? Likewise, how do I report options which I sold for a profit?
c) Can I use the average exchange rate for 2015 or the exchange rate that the trade settled for US denominated trades?
Thanks!
submitted by confusedlandlord22 to PersonalFinanceCanada [link] [comments]

Margin requirements in Options Trading - Let's talk about ... 2020 Margin Requirements In Options Trading  Option selling/writing margin Margin Accounts - Using margin with options Option Margin Margin Trading 101: How It Works - YouTube

Margin in futures trading is similar to margin in options writing in the sense that they are both money that are to be held in the trading account in order to fulfill the obligations under the contracts when things go wrong for the trader. What is different is the fact that there are 2 kinds of margins in futures trading; Initial Margin and ... Trading on margin in the stock market is a different concept than trading on margin in the futures market. In the stock market, the Federal Reserve sets the allowable margin at 50 percent, so to trade stocks on margin, you must put up 50 percent of the value of the trade. The investors who buy option contracts are required to maintain the margin requirements on the position. Based on the position taken by the investor, the margin requirement varies. Traditionally investors need to deposit 100% of the options premium in 2 business days after settlement but it has evolved gradually over the period. Options trading is already complex enough but when you start looking at margin trading with options you are adding a whole new dynamic to it. However, once you have a solid understanding on how options work with margin then you will be in a position to execute strategies that have a statistical advantage like credit spreads and selling calls and puts. A margin account is a type of trading account that allows the use of margin (borrowing of money) to trade different types of financial assets. In order to open a margin account, you need to fund the account with $2,000. This is a FINRA rule to protect novice investors from the risk of substantial losses.

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Margin requirements in Options Trading - Let's talk about ...

How to Make Money Trading Options - The Vertical Spread - Duration: 9:52. Sky View Trading 943,024 views. ... What is Option Margin? What are Margin Requirements? - Duration: 13:59. Margin requirements in Options Trading - Let's talk about options by THE OPTION SCHOOL There have been instances when traders are charged different margins i... Options Trading for Beginners (The ULTIMATE In-Depth Guide) - Duration: ... How To Avoid Pattern Day Trading Rule Cash Account VS. Margin Account - Duration: 23:37. The Boiler Room 115,603 views. How I’m Turning $100 Into $10,000 SAFELY – The Best Trading Strategy To Make $100 A Day - Duration: 30:46. Trading Fraternity 189,986 views An explanation of how margin works with stock options and how much margin would be required to place a trade. ... Basics Of Trading Options With Margin [Episode 97] - Duration: 6:16.

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