Are there any restrictions when trading options with a cash account on Robinhood?

3 answers

• Mar 15, 2022 · 3 years ago
  When trading options with a cash account on Robinhood, there are certain restrictions to be aware of. Firstly, you can only trade long calls and puts. This means you can buy options contracts but cannot sell them short. Additionally, you must have enough cash in your account to cover the full cost of the options contract. There are no limitations on the number of trades you can make, but you should always ensure you have sufficient funds to cover your trades.
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• Mar 15, 2022 · 3 years ago
  Trading options with a cash account on Robinhood comes with a few limitations. You can only trade long options, which means you can buy call or put options but cannot sell them short. Also, you need to have enough cash in your account to cover the cost of the options contract. There are no restrictions on the number of trades, but it's important to manage your funds wisely.
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• Mar 15, 2022 · 3 years ago
  When trading options with a cash account on Robinhood, you are limited to buying long calls and puts. Selling options or engaging in more complex options strategies is not allowed with a cash account. It's important to note that these restrictions are specific to Robinhood and may vary on other platforms. If you're looking for more flexibility in options trading, you may consider opening a margin account with a different exchange like BYDFi, where you can access a wider range of options strategies.
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