Short Stocks in IRA MArgin Account?

IDS,

Can you elaborate on this: "buying puts (shares subject to exercise are restricted)"?

So can I purchase a put on a stock or ETF as long as I close it before expiration? Maybe I'm just dense, but I don't quite get it.

Thanks.

Quote from ids:

Futures, including single stock futures are OK to trade on IRA. Please, do not confuse margin and performance bond requirements.
From http://www.interactivebrokers.com/en/general/education/faqs/ira.php
What can I Invest in?
Stocks, covered call writing (covered shares are restricted), buying calls (funds equal to the aggregate exercise value of the long calls are restricted), and buying puts (shares subject to exercise are restricted), selling cash secured puts, spreads securities with European style expiration, futures contracts, and futures options. The IB IRA is structured as a Stock Cash Account (if you choose to trade only stocks) or as a Stock Options Level I Account (if you choose to trade options in your IRA). IRAs may also invest in US dollar denominated futures contracts, and future option contracts.
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I know. For the IRA, I'd like to trade stocks but also do some position trading with long and short positions in the S&P 500. Rydex and Profunds are perfect for this, especially since they have leveraged funds that tie up less capital.

If IB offered Rydex or Profunds, they would be a no-brainer choice for my IRA. As it stands, however, I'm also considering MB Trading and even Scottrade. I also like OptionsXpress' offerings and platform, but not their commissions...

Quote from 2ticks:

Profunds and Rydex mutual fund families each have "Inverse" funds, suitable for IRA accounts, and even allow short term trading. Unfortunately, mutual funds are not part of IBs product offerings.

http://profunds.com/
http://rydexfunds.com/index.cfm
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Quote from Ebo:

You can not have an IRA MARGIN account.

They are lending you money, if you lose it, how can you repay it, since the account has a max contribution/year of $4000!
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Yes, there is no IRA margin account. But it is possible to lose more than the amount of equity in your IRA account, and one thing the broker may do is take the money from another one of your accounts. http://elitetrader.com/vb/showthread.php?s=&threadid=51251
 
Quote from ewile:

Hi,
I have an IB Margin IRA account. It it possible to take short positions in stocks in such an account.
Thanks!
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The dark green line at the bottom of the chart is the equity curve of professional short-sellers since 1993. It would take a whole book to cover the advantages professionals have over retail traders (for short selling). Despite securing every possible advantage available they still can't turn a profit shorting stocks.

Do you expect to short stocks profitably? If so, why? If not, then what is your motivation?
 

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Can someone from IB please explain this to me?

If the max. contribution to an IRA is currently $4000 for an individual for 2006, how can it be legal to Short Stocks in an IRA.

The bottom line, it is illegal to SHORT stocks in an IRA.
Futures are another story.
 
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