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  • Allen D.Allen D.
    Participant
    Post count: 19

    Sean, I’ve read both of your options reports. I’ve been paper-trading options the past several months. I currently have level 2 options permission with my etrade account. To move to level 3 (for spreads) I have to have a margin account. I think you have recommended not to trade with a margin account. If I understand correctly, as long as my trades are within the value of my cash account, I wouldn’t use any of the margin account. Am I clear on that? And is that what you mean by not using margin, or do you mean you don’t recommend even having a margin account?

    Sean HymanSean Hyman
    Keymaster
    Post count: 3309

    That’s correct. You can have a margin account and not trade on margin.

    For instance, if you have $20,000 in your account….just don’t buy over $20,000 worth of stocks/options and you’re not trading on margin. That’s correct.

    Allen D.Allen D.
    Participant
    Post count: 19

    Thanks! That’s what I thought. But I’ve learned trading terminology is not something to assume what is meant. ūüôā
    I appreciate your help!!

    Sean HymanSean Hyman
    Keymaster
    Post count: 3309

    You’re welcome.

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