Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (84116)	5/5/2007 5:01:38 PM
From: Elroy Jetson	Respond to of 206326

Options are permitted in IRA accounts at most brokers. And you're correct, people shouldn't be having these problems in non-IRA accounts if they buy and sell as Type 2 Margin transactions. IRA accounts are not really appropriate vehicles for short-term trading from many stand-points. An example is selling a money market fund with next-day settlement, on the same day you buy stock. The money market settlement occurs two days before the money is due for the stock purchase - so most brokers will charge no interest on this use of margin. But there is no violation of capital requirements because margin was used and thus sufficient capital was available. If they are forced to get tight, they will charge you the interest on the margin rather than charge you with a capital violation. .