June 10, 2011
is there a minimum “APPROXIMATE ANNUAL INCOME AND NET WORTH” required in order to trade options?
noam asked:
I would like to trade options – covered calls, calls and puts – and saw in the forms a question about the income and net worth. i was wondering if there is a minimum?
I would like to trade options – covered calls, calls and puts – and saw in the forms a question about the income and net worth. i was wondering if there is a minimum?
tnx.
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Comments on is there a minimum “APPROXIMATE ANNUAL INCOME AND NET WORTH” required in order to trade options? »
No, I signed up years ago.
I was just starting to go college and worked at night.
My income was barely above min wage.
What they are really looking for is your experience in trading – they need to make sure you know what you are doing. I had about 5 years of trading experience – since I was trading before I was 18.
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Nope. There is no minimum. They are asking because they are legally required to ask those questions, then advise you of the risk. You’ll just have to click that you understand the risks.
I recently started trading currencies and had the same things when I opened my account. After answering the questions, it popped up a message saying that based on my financial situation and trading experience that forex trading probably wasn’t a good idea. I just had to confirm that I wanted to ignore their advice and open an account anyway. Its nothing more than a legal loophole so that their not liable if you lose everything. Just make sure you start with a small account that you can afford to lose (or a practice account), until you have some success under your belt.
Yes and no.
No — most anyone with income and assets will be granted a basic option access. Trading experience and “more” income & assets will get many people a basic margin account (required for less basic options trading).
Yes — Particular trades and more “unlimited” access will generally come only with specific trading experience at the particular firm and/or a particular account size.
The “you count” line at most brokerages of any size is an account of at least $100,000. Discount brokerages begin to grant perks & privileges between $250,000 and $500,000. “Unlimited access” begins to be automatic between $1 million and $5 million.
do you have ANY investing experience in any type of equities???
Options are not for beginners