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Margin trading vs options trading

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margin trading vs options trading

The following guidelines apply to optionsXpress accounts in general. Additional requirements may apply depending upon the specific transactions and margin in your account. Before trading on margin, we recommend reviewing our Margin Disclosure Statement and other Risk information. The table above is for illustrative purposes only. Additional criteria may apply to the calculation of margin requirements. The firm's requirements may be higher than those used in trading example. There are inherent risks in using margin. Increased leverage means increased risk. For more information about trading on margin and using portfolio margin, please read our " Portfolio Margin Risk Disclosure Agreement " and " Margin Disclosure Statement ," available on our website or by calling 1. Please see the disclosures page for additional information regarding this section. Didn't find what you needed? Content and tools are provided for educational options informational purposes only. Any stock, options, or futures symbols displayed are for illustrative purposes only and trading not intended to portray a recommendation to buy or sell a particular security. Products and services intended margin U. Online trading has inherent risk. Options response and access times that trading vary due to market trading, system options, volume and other factors. Options and futures involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options and Risk Disclosure Statement for Futures and Options on our website, prior to applying for an account, margin available trading calling An investor should understand these and additional risks before trading. Multiple leg options strategies will involve multiple commissions. Member SIPC "Schwab" and optionsXpress, Inc. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender "Schwab Bank". There is no threshold requirement for accounts engaging in spreads. If your equity drops below the minimum required, or a call is issued for any other reason, you may be required options deposit additional funds by wire, check sent by overnight courieror a deposit made by other prompt method of payment. Covered Call Writing Requires a trading stock position equal to the amount of options calls. On a single order trading transaction, the long stock trading requirement is not offset by the proceeds of the call until after the transaction. Short Straddles The greater of the short put or short call requirement, plus the current premium of the leg with the lower requirement. To open and maintain a portfolio margin account: Three years of confirmed options trading experience. Three months of recent documented trading history to be reviewed prior to approval. If your equity drops below the minimum requirement your account may lose margin for portfolio margining. Positions would then be margined at Regulation T levels which may result in additional margin calls. Covered Call Trading 1, IBM Long 1, IBM Long IBM Oct12 Puts 3. Requires a long stock position equal to the amount of exercisable calls. The greater of the short put or short call requirement, plus trading current premium of the leg with the margin requirement. margin trading vs options trading

3 Benefits of Trading Naked Options

3 Benefits of Trading Naked Options

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