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Options Trading
Do nots and can nots when trading options
Do nots and can nots when trading options
  • Provisional credit given for in-flight deposit(s) can not be used for margin trading.
  • Options cannot be traded using leverage.
  • You can apply for options trading with either your cash or margin account or your IRA account. Spreads can not be traded in IRA accounts though.


When trading options on a cash account, pay attention to the following rules:

When you initiate an ACH deposit, it usually takes five business days for the funds to settle. During this time, an account in good standing will receive access to their funds (up to $1,000) in the form of provisional buying power. This buying power can be utilized to trade stocks and ETFs, but not options. Please wait for deposits to fully settle before trading options.


If you use unsettled funds to trade options, you will run the risk of incurring a GFV, which may impose certain restrictions on your cash account. In order to avoid a GFV, please adhere and familiarize yourself with cash settlement rules.

*GFV (Good Faith Violation) only applies to cash accounts.


When trading options on a margin account, pay attention to the following rules:

You cannot trade options with unsettled funds from your deposit

When you initiate an ACH deposit, it usually takes five business days for the funds to settle. During this time, an account in good standing will receive access to their funds (up to $1,000) in the form of provisional buying power. This buying power can be utilized to trade stocks and ETFs, but not options. Please wait for deposits to fully settle before trading options.

Options cannot be traded using leverage. 


Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options and Option Spread Risk Disclosure before trading options.

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