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IRA Accounts
- Thread starter Ebo
- Start date
Quote from nkhoi:
no margin allow in IRA account but by trading futures you are using margin by default.
Wrong answer.
Futures require a performance bond and nothing prohibits trading them in an IRA. You can trade futures in an IRA with any number of companies.
I currently trade E-minis and other futures in an IRA w/ IB but wouldn't recommend them yet as their product is still undeveloped =looks more like a Beta test.
You can trade ES options but not YM. You cannot trade option spreads but you can through other brokers like OptionsXpress. IB also doesn't allow holding foreign currencies though you can through a Self-Directed IRA.
Another alternative is to go with a 'Self-Directed IRA' which offers much more flexibility. This type of IRA is more expensive to maintain but you can trade it like (almost) any other futures account through any number of brokers.
I have an IRA account with I.B. It allows you trade futures.Quote from Ebo:
I understand the concept of margin.
I realize you are not able to Margin Equities in an IRA.
Will a broker allow you to trade E minis with the same "Performance Bond minimums" as a regular account?
Margin in futures' trading has a different meaning from the one in equity trading. In equity, it means your broker lends you money. Obviously this is not allowed in an IRA account. In futures trading, margin means good faith money. It's your money. Your broker doesn't lend you any thing. That's why you can trade futures in an IRA account.