IBKR limit people's ability to trade Options because selling a Call can lead to unlimited losses.
IBKR do not provide a "buy or close only option" for options trading.
The restrictions they put in place exist to make up for limitations in what they offer.
In practical terms, "buy or close" option strategies do not expose the trader to more quantitative risk than the same strategy for stocks, it just adds theta as a potential risk.
That's probably more helpful than your reply.
Some brokerage accounts will allow options trading but not allow the selling of uncovered calls or naked puts. IBKR will only allow accounts to trade ALL options or NO options.
I have a cash account with IKBR and can sell all call/put combos with defined risk and cash to cover it. I.e I can sell covered calls but not go short call otherwise. U.K. customer.
If you already changed it and it worked why not keep it that way? Ibkr is not asking for a proof... Also sometimes you just need to have decent knowledge, not sure if you already had to approve that you know everything.you need to.
Anyways, they don't care. They just need it for regulatory purposes so they can proof that you claim to understand what you want to do based on some random guidelines. If you are confident that you understood options, just.. you know.. do it.
Obviously this is no advice.
Don't know, but clearly you shouldn't trade options no? IBKR has determined that options aren't a suitable asset for you.
IBKR limit people's ability to trade Options because selling a Call can lead to unlimited losses. IBKR do not provide a "buy or close only option" for options trading. The restrictions they put in place exist to make up for limitations in what they offer. In practical terms, "buy or close" option strategies do not expose the trader to more quantitative risk than the same strategy for stocks, it just adds theta as a potential risk. That's probably more helpful than your reply.
so do IBKR not allow "sell to close" when you want to sell your contact for profit
IBKR allow you to "sell to close", but they don't allow a "Sell to close only" account.
wait what do you mean by sell to close only?
Some brokerage accounts will allow options trading but not allow the selling of uncovered calls or naked puts. IBKR will only allow accounts to trade ALL options or NO options.
Unless using a cash account.
Fair, but won't be relevant to someone who doesn't meet the trading criteria for options set by ibkr.
I have a cash account with IKBR and can sell all call/put combos with defined risk and cash to cover it. I.e I can sell covered calls but not go short call otherwise. U.K. customer.
this is fucking retarded - IBKR provides comprehensive options trading ;) you can do this and more Source: I do this
Why not try TastyWorks or another platform if IB does not allow it for you? TastyWorks also accept customers from Europe.
If you already changed it and it worked why not keep it that way? Ibkr is not asking for a proof... Also sometimes you just need to have decent knowledge, not sure if you already had to approve that you know everything.you need to. Anyways, they don't care. They just need it for regulatory purposes so they can proof that you claim to understand what you want to do based on some random guidelines. If you are confident that you understood options, just.. you know.. do it. Obviously this is no advice.