Does anyone know the minimum account size to trade naked options on IB? What kind of net worth and income requirements will they desire? Will having a recent bankruptcy on your record preclude one from getting approved for naked option trading? If the bankruptcy was due to blowing up a trading account, will one be banned from ever having a margin account again?
Financial qualifications to trade naked options on IB
- Thread starter OptionFool
- Start date
Has your bankruptcy been resolved?
If so, do you have funds you can invest in the high risk world of naked options?
If so, do you have funds you can invest in the high risk world of naked options?
Your experience with your previous broker should give you a good idea how to figure all that out.
The process of opening up a trading account doesn't involve questions about bankruptcies, so my educated guess would be NO. You should have no problem opening up a new trading account.
From my experience:
No minimum account size (Except the min. required by the broker, IB, which is $2000 I believe as of now)
Having a recent Bankruptcy won't have an effect. If the bankruptcy was due to blowing a trading account, again, this won't change things or harden the requirements as it's not a factor.
In order to be eligible for shorting naked options, you will have to provide the right answers in your KYC application, e.g. level of experience with options, how long have you been trading options, your investment/trading objectives, etc...
There is a simple algorithm attached to those KYC questions, which based on your answers will automatically tell which products you can or cannot trade (Based on the algorithm rules of course, which are mainly derived from the regulations).
I'm sorry but if you have to ask that question maybe you ought to think about it? The only question you have to ask yourself is "Am I experienced enough with options to take the riskiest options position"?