Futures in IRA @ IB

[u130747]

Just checked my account type and got approved for futures, SSF and options on futures in my IRA @ IB. Now can trade both long and short there also.


Bert

 

[estrader]

Quote from u130747:

Just checked my account type and got approved for futures, SSF and options on futures in my IRA @ IB. Now can trade both long and short there also.


Bert

How can it be? I thought IRA accounts cannot be margin.

 

[u130747]

The prohibition is on purchasing assets for an IRA with borrowed funds. When you purchase shares on margin, that is what you are doing - buying shares w/ funds borrowed from your broker.

When you post 'margin' on a futures position you are not borrowing funds but posting a bond as security against potential losses. There is no prohibition on futures per se, long or short, in an IRA.


The above copied from another post on ET.


Bert

 

[Uni]

Quote from estrader:



How can it be? I thought IRA accounts cannot be margin.

Read through this closed thread for your answer:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=19307

Uni

 

[stock777]

Tried a trade, still getting reject, even though account looks approved.

 

[estrader]

Quote from u130747:

The prohibition is on purchasing assets for an IRA with borrowed funds. When you purchase shares on margin, that is what you are doing - buying shares w/ funds borrowed from your broker.

When you post 'margin' on a futures position you are not borrowing funds but posting a bond as security against potential losses. There is no prohibition on futures per se, long or short, in an IRA.


The above copied from another post on ET.


Bert

I see the subtle difference. But as long as it is allowed who cares. All I want to do is trade, trade and trade some more.