Call Options Put Options Implied Volatility Basic Strategies The Options Playbook TastyTrade Helpful Page CBOE Options Institute CBOE Webcasts CBOE Index Settlement Values Streaming Futures Quotes Economic Calendar. Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading.

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Some have professional experience, but the tag does not specifically mean they are professional traders. Difference between Tier 2 - Standard Margin Account and Tier 3 - Advanced Margin self. Can somebody explain the difference in privileges between these two accounts? Are there minimum requirements regarding Net Liq for Tier 3 accounts?

I want to have the ability to sell naked options as they are higher probability trades and obviously more risky , which I can't do unless they are cash secured in my Tier 2 Standard Margin account. The requirements are set by each broker. Tier 3 allows naked calls and puts which can mean unlimited losses.

Tier 2 standard margin is a margin account with ability to do option spreads. Spreads are NOT cash secured but are defined risk. Tier 3 allows you to sell naked without spreads, BP reduction is determined on a formula.

A tier 2 account does not allow naked options, but naked options can be simulated by buying far OTM options in order to lower the buying power necessary. Works for calls too. A tier 3 account lets you sell the option naked and not worry about buying a wing to lower the buying power.

The same short put will require a few thousand in buying power. Then there is portfolio margin, which you can think of as the unofficial tier 4.

Difference between Tier 2 - Standard Margin Account and Tier 3 - Advanced Margin : options

This allows trading with considerably lower margin requirements. The requirements to get this are much higher than the other levels.

The requirements for tier 2 and 3 are pretty vague and seem to be done on an arbitrary case by case basis. Higher income, net worth, and investment experience seem to matter more than how much money is actually in the account.

Looks like it's a TD Ameritrade name for the highest permission account, so it's more or less the same, just has more abilities. You can always apply, but I doubt your broker will agree to raise your permission level until you can show them that you are fairly sophisticated and experienced. And have a high enough income and account balance. Margin is their money after all, and they lime to get it back.

Tier 3 options privileges at TDAmeritrade : options

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Submit a new text post. Call Options Put Options Implied Volatility Basic Strategies The Options Playbook TastyTrade Helpful Page CBOE Options Institute CBOE Webcasts CBOE Index Settlement Values Streaming Futures Quotes Economic Calendar Option Pros: Generic method of calculating margin requirements outside of a specific strategy.

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