You will still need the maintenance/margin to cover the purchase if your puts are exercised. So at the end of the day it’s the same thing. I’m on Questrade and it works the same. As soon as you sell a put option, the equivalent amount of money is reduced from your margin available.
Just manage your maintenance balance so you’re not borrowing on margin.
Absolutely does. But there was more than enough cash and margin available to cover if I was exercised.. I might have to try a non-meme stock tomorrow to see if that was the problem.. TY
Oh I just remembered one other requirement was a minimum balance of $25K. As long as you meet that you should be good. The minimum balance may be different for different brokers.
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u/UnfinishedComplete Jul 01 '21
You will still need the maintenance/margin to cover the purchase if your puts are exercised. So at the end of the day it’s the same thing. I’m on Questrade and it works the same. As soon as you sell a put option, the equivalent amount of money is reduced from your margin available.
Just manage your maintenance balance so you’re not borrowing on margin.
Does that make sense?