would think or swim deny me options trading?
Author: I heard that for think or swim you have to fill a survey with information and send it to them to start option trading. Is there any reason why they might deny someone the ability to do it. And are there any sites that guarantee you the ability to option trade. I also want to sell them so sites that only allow you to buy them aren’t good for me.
Don’t know about think or swim but I have never heard of anyone being denied by Optionsxpress.com. Maybe you can try that instead.
ThinkOrSwim is required by law (as are all other brokers) to establish suitability. I don’t know what the Gov’t requirements are… but it’s not a high bar to pass.
Reality of trading Options is another story. Once you understand the “Greeks” you will be closer to being able to trade Options successfully. You sound like you’re a year or two away from trading options. Learn this stuff…. or you’ll have some pretty big disappointments. Option trading is not nearly as simple as it looks. Don’t learn this the hard way. Read some good books on the subject.
Check out the free Educational tools on this web site;
https://www.redoption.com/resources.php
Not everyone is qualified to trade options and many others should not, and brokerage firms are bound by law to determine if customers can and should trade, not only options but to have margin accounts.
If a firm feels you are not qualified they can and should prohibit you from trading, especially if you do not have a good understanding of option securities.
Writing options is not for everyone, especially for those that do not have sufficient capital to deposit with the firm. Firms DO NOT run credit checks on potential or existing clients, they do use an outside source that does check for previous industry activities, government restrictions or the use of “drop boxes” for mailing addresses.
So many firms will turn customers down if they believe they do not have sufficient knowledge nor have the ability to deposit monies in their account.
Of course they might deny you. Doing options, margin, futures, is risky stuff. They need to verify that you have the ability to pay, if these risky products ‘go south’ on you. Do you think they want to be stuck with the bill, if you can’t pay??
All sites will do a credit check, to make sure you can pay up, if that becomes necessary. No one will guarantee you the ability to trade, if you are not credit worthy.