If you intend to trade stocks or options actively, you should refer to your intraday buying power balance. Once your IRA is approved for limited margin, you will need to contact a representative to transfer your positions to margin, and future trades will default to the margin account type, rather than your cash account type. Other restrictions may apply, so be sure to check the eligibility requirements on your broker dealer’s website. For example, at Fidelity you cannot select an FDIC-insured vehicle as your core account option within your account. Some brokerage firms, including Fidelity, have additional requirements. To be approved for limited margin at Fidelity, the investment objective on your IRA must be "most aggressive." You must also maintain minimum equity of $25,000 or more within your account. In order to qualify for limited margin, you must meet eligibility requirements, and read and agree to a limited margin account supplement. Limited margin is available for most types of IRAs, including traditional IRAs, rollover IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. Unlike a nonretirement account that has full margin trading privileges, limited margin doesn’t allow you to borrow against the value of existing holdings to create cash or margin debits, sell securities short, or establish naked options positions. Limited margin means you can use unsettled cash proceeds in your IRA to trade stocks and options actively without worrying about cash account trading restrictions or potential good faith violations. However, IRAs do offer what’s known as "limited margin." If you are looking to trade on margin within a brokerage IRA, you will not be able to access the full range of margin trading features noted above. ![]() ![]() Margin accounts also enable you to sell securities short, execute complex options strategies, and access a line of credit. Trading on margin enables you to borrow against the value of securities you own in your brokerage account and use those funds to buy additional securities.
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