Cash Account vs. Margin Account For Options Trading | Avoid PDT Rule

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  • เผยแพร่เมื่อ 5 ม.ค. 2025

ความคิดเห็น • 181

  • @artrock8175
    @artrock8175 4 ปีที่แล้ว +47

    Short, concise, and to the point! A great reference video to send to new traders who have questions regarding this pretty important topic! Thank you for posting this!

    • @dinismall3940
      @dinismall3940 4 ปีที่แล้ว

      Great video content! Apologies for chiming in, I would love your thoughts. Have you researched - Genevi Sonadelyn Eradicator (probably on Google)? It is an awesome one of a kind guide for making money using this effective options system without the hard work. Ive heard some interesting things about it and my work buddy after a lifetime of fighting got astronomical success with it.

    • @mr.vip317
      @mr.vip317 2 ปีที่แล้ว

      This is excellent information. I didn't know until last we that you can avoid the PDT rule if you use a cash account. I've been trading options for over here now, that's craaaazy.

  • @TeddyAlexanderv6
    @TeddyAlexanderv6 2 หลายเดือนก่อน +147

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    • @OscarBarnaby3k
      @OscarBarnaby3k 2 หลายเดือนก่อน

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    • @NikolasMartine01
      @NikolasMartine01 2 หลายเดือนก่อน

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      @MatthewAidan4ns 2 หลายเดือนก่อน

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      @NikolasMartine01 2 หลายเดือนก่อน

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    • @MatthewAidan4ns
      @MatthewAidan4ns 2 หลายเดือนก่อน

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  • @Siegefya
    @Siegefya 2 ปีที่แล้ว +1

    You can do cash secured puts with a cash account as well. You can do the full wheel strategy.

  • @iletz-lowetradeequities2020
    @iletz-lowetradeequities2020 2 ปีที่แล้ว +2

    Thank you for sharing your pro moves. Enjoying your teaching style, humility and patience with which you speak. Opened separate cash and margin account on TDA.

  • @bryanmcgill3317
    @bryanmcgill3317 2 ปีที่แล้ว +2

    Thanks for the details, Vincent. Great clarity in what you walked us thru

  • @AlternativeLine
    @AlternativeLine 3 ปีที่แล้ว +5

    I learned everything about options within 3months and didnt know i needed a god damn margin account to trade every strategy, i though margin has stupid ammount of fees each trade 5-7% but i was wrong ty for explaining.

    • @adolfoorantes3690
      @adolfoorantes3690 8 หลายเดือนก่อน

      Hey man! I just got started in all this and i don’t know to get a margin account since im a beginner (and level 1 option trader) any advice?

  • @triplebribs4975
    @triplebribs4975 4 ปีที่แล้ว +7

    Vince I have recently joined the discord because I love how transparent and open you are. It is well worth the money. You've responded to me a few times and it's so helpful to have an experienced trader to learn from and look up to. Please keep up the good work, I appreciate everything you do for your discord and TH-cam community.

  • @andrewmyers3520
    @andrewmyers3520 2 ปีที่แล้ว +7

    Video starts at 1:31

  • @benreynolds18
    @benreynolds18 3 ปีที่แล้ว +3

    Good to know man appreciate it. Glad to have just joined the discord

  • @ducus2318
    @ducus2318 3 ปีที่แล้ว +1

    Supporting your Chanel with providing useful knowledge for all people !

  • @jasonking6892
    @jasonking6892 9 หลายเดือนก่อน

    Excellent video👍🇬🇧

  • @supericio
    @supericio 4 ปีที่แล้ว +2

    Nice and clear video as usual Vince!

  • @pete2169nv
    @pete2169nv 4 ปีที่แล้ว +5

    Just when I was looking into the switch. Thanks for the quick breakdown explanation on both accounts Vince.

  • @hadassah22
    @hadassah22 2 ปีที่แล้ว +2

    Thank you for breaking it down for beginners like me.

  • @jo6048584
    @jo6048584 3 ปีที่แล้ว

    Perfect video. Just started trading with an experienced buddy. Only been able to make 5 trades and hit on 4 of them. Gotta make more!

  • @derrickvancr603
    @derrickvancr603 3 หลายเดือนก่อน

    I bought a contract for $45 and it jumped to 460 price but my order didn’t get filled for some reason

  • @millionairetune
    @millionairetune 7 หลายเดือนก่อน

    I’m just starting to learn this.. with a cash account will I be able to do swing trades?

  • @Livesuncut
    @Livesuncut 2 ปีที่แล้ว

    So you can’t do a put spread on a cash account

  • @rohithbellapuk
    @rohithbellapuk 3 ปีที่แล้ว +5

    Thank you bro, exactly what I was looking for. Good luck in the casino!

  • @Pantomath.
    @Pantomath. 3 ปีที่แล้ว +2

    Excellently done. Good explanation. New subscriber. Watching from Canada. 🇨🇦

  • @gnarlyartstudio
    @gnarlyartstudio 3 ปีที่แล้ว +6

    Thanks for the info. So are the funds that settle next day available before market open or is it like 24hrs from the time of sale?

  • @buildearlyandtradingcorp.
    @buildearlyandtradingcorp. ปีที่แล้ว

    So happy with your inputs! Thank you.

  • @preetkaurshergill8334
    @preetkaurshergill8334 2 ปีที่แล้ว +1

    Can I trade unlimited options in Robinhood cash accounts with settlement funds ?

  • @christophercourtemanche1945
    @christophercourtemanche1945 2 ปีที่แล้ว +1

    Bro they got this video hidden. I just figured this out today and decided to search for confirmation. I swear I've looked for this time and time again and no one had any clear info or said no and then today I learned it first hand and I find this

  • @MiguelGarcia-vj7ju
    @MiguelGarcia-vj7ju 8 หลายเดือนก่อน

    Today my TOS margin account went under 25k and I was requested to deposit more funds, so I have been thinking if I switch to cash, but not sure if I can trade options the same day buy/sell, understanding that this will settle next bussines day...

  • @jessegardona4639
    @jessegardona4639 4 ปีที่แล้ว +2

    good video, great job Vincent

  • @vqfive
    @vqfive 10 หลายเดือนก่อน

    But is the profit that you made off that trade also available immediately in a margin account?

  • @abronxtale
    @abronxtale 3 ปีที่แล้ว

    Highly underrated and good info

  • @austintube
    @austintube 4 ปีที่แล้ว +2

    after you bought option contract with the cash account, how can you exit if you can't sell option contract?

  • @RedTheLegendUH82Luv
    @RedTheLegendUH82Luv 2 ปีที่แล้ว +1

    You can most definitely trade options on robinhood with a cash acct... like definitely 💯

    • @VincentDesiano
      @VincentDesiano  2 ปีที่แล้ว +1

      This video is years old, they just recently implemented the cash account feature

  • @tannerlavanture6489
    @tannerlavanture6489 3 ปีที่แล้ว +3

    what broker allows you to day trade options with a cash account while not being under PDT rule?

    • @Timcook1998
      @Timcook1998 2 ปีที่แล้ว

      In my knowledge PDT applies only for margin accounts

  • @trustmebrother
    @trustmebrother 4 ปีที่แล้ว +2

    I like your videos cause you go straight on points. I am 100% agreed at 7:30 I ran into this many times.

  • @kingfran8758
    @kingfran8758 3 ปีที่แล้ว +5

    In cash account- if I start with 500 and spend the whole 500 on a stock and collect all profit. Can I still trade the 500 again without the profit i collected, the same day.
    Basically can I trade my whole account multiple times in a day?

    • @jokerhere4504
      @jokerhere4504 3 ปีที่แล้ว +1

      I’m curious about this too, I’ve heard you can do multiple but I’m hearing conflicting information

    • @jokerhere4504
      @jokerhere4504 3 ปีที่แล้ว

      Hey so I may have an answer for it actually after doing some digging so apparently you can’t do that, so it’d be wise to use a small percentage of your account when you trade

    • @kingfran8758
      @kingfran8758 3 ปีที่แล้ว

      @@jokerhere4504 thank you!!!

    • @VincentDesiano
      @VincentDesiano  3 ปีที่แล้ว +3

      No, you can only use the $500 buying power per day. What you described above is called a good faith violation. What Joker explained is correct.

    • @kingfran8758
      @kingfran8758 3 ปีที่แล้ว

      @@VincentDesiano thank you for the confirmation!! It means a lot.

  • @brandonhuedepohl6367
    @brandonhuedepohl6367 4 ปีที่แล้ว +2

    Great video like always!

  • @Solo4Fun1993
    @Solo4Fun1993 3 ปีที่แล้ว

    I was looking for this answers. Thanks bro 😎

  • @thiskcy1
    @thiskcy1 3 ปีที่แล้ว

    Found what I needed! This is gold!

  • @samchahal9869
    @samchahal9869 ปีที่แล้ว

    Anybody Can explain the $25000 Rule… it should be in cash in your brokerage account or overall of your account to avoid PDT? I have margin account.

  • @tanishamason1319
    @tanishamason1319 2 ปีที่แล้ว +1

    How can i get approved for a "Standard cash account" ? I keep getting approved for the wrong type. i was approved for a covered option trading account, then approved for a margin account

    • @LikeableFiggas
      @LikeableFiggas ปีที่แล้ว +1

      My exact ? Also I'm trying to switch from a margin account to a cash account cud 3trades a week isn't enough at all.....

  • @Parachi
    @Parachi 4 ปีที่แล้ว

    what is the way to get rid of the margin that i have already on the stocks that i bought, thanks

  • @NicoleByron
    @NicoleByron 4 ปีที่แล้ว +1

    this was awesome! thank you V

  • @vikramrout7395
    @vikramrout7395 3 ปีที่แล้ว +1

    Finally !! Thank You for this.

  • @Whatsleep
    @Whatsleep ปีที่แล้ว

    So with stocks you can't enter into a short unless you have a margin account with over 25k in it correct?

  • @justinsigh6869
    @justinsigh6869 2 ปีที่แล้ว

    So if I have 5,000$ in my margin account that would mean I have 25,000$ margin which would mean I can trade with no pdt rule as many times a day as I want?

  • @jrelechrelech6898
    @jrelechrelech6898 2 ปีที่แล้ว

    How do we pay the margin? If I have 20k on margin and I only use 2k from it, do I only pay for the 2k plus interest?

  • @itsterri8520
    @itsterri8520 4 ปีที่แล้ว +1

    I have 2 accounts with webull. One with cash and one with margin.

  • @aztradescrypto
    @aztradescrypto ปีที่แล้ว

    I have a cash account with interactive brokers, if my account size is over 25K, do i still have to conform to the settlement period? because its annoying to wait +2 days to be able to trade again! if im over 25K, will that take this pain away?

  • @darkxgamesyt206
    @darkxgamesyt206 4 ปีที่แล้ว +4

    Can i buy calls and puts In cash account?

    • @lucasm6890
      @lucasm6890 4 ปีที่แล้ว +4

      yes, but no spreads

  • @SH-jv5uf
    @SH-jv5uf 2 ปีที่แล้ว

    Will Tasty Works allow me to trade strangles (buy calls/buy puts only) in a cash account?

  • @jamiebrown6194
    @jamiebrown6194 2 ปีที่แล้ว

    Really helpful and well explained! Thanks a lot

  • @Haguewood
    @Haguewood ปีที่แล้ว

    So can I trade options on a cash account ?

  • @JoJo-dh4xg
    @JoJo-dh4xg 3 ปีที่แล้ว +1

    The 3 trades only applies to buying right? What if I have 12 existing option positions, can I sell all even if I have made 3 buys and 3sells?

    • @justintanner246
      @justintanner246 2 ปีที่แล้ว

      PTD rule is when you buy a stock and sell that stock within the same day. It don't matter how many times you sell. For an example: I buy into 3 different options and sell the same options on Monday, but I've got 8 options I was holding over the weekend, I am able to sell them all because I got them Friday. A swing trade is holding overnight or say a few days and or weeks which you can do however much you want. So if I buy a stock today I can sell them tomorrow without any problems, considered a swing.

  • @juancamilorico700
    @juancamilorico700 2 ปีที่แล้ว

    Can u buy puts with a cash account?

  • @Simonjose7258
    @Simonjose7258 2 ปีที่แล้ว

    Have the rules changed on RH? I'm level 3 but not Gold. Below the "PTD Protection" switch which locks 🔐 the 4th trading day, there's a link to "turn off instant settlement."

  • @dave1142
    @dave1142 ปีที่แล้ว +8

    I don’t know how, but you’ve been able to package an unbiased analysis that is more educating than the normal, thank you for your effort to be the signal and not the noise, I had to get an expert, Sir Eric Arlo to manage my trades in Options, Futures and crypto as I lack the knowledge and skills to make good trades, my account has been growing up to 7- 15 % weekly depending on market conditions and this is the sixth month for me

    • @Ahmad-b9q5x
      @Ahmad-b9q5x ปีที่แล้ว

      It's important to note that trading can be complex and involves substantial risk. It requires a good understanding of the underlying markets, analysis of supply and demand factors, and careful monitoring of price movements.

    • @olivia4182
      @olivia4182 ปีที่แล้ว +1

      Hi there, what if I will like to give it a try with your pro, since you are familiar with how this works maybe you can link me to him

    • @dave1142
      @dave1142 ปีที่แล้ว

      Arloeric1 @

    • @dave1142
      @dave1142 ปีที่แล้ว +1

      That is his Gmail above so you can reach him okau

    • @olivia4182
      @olivia4182 ปีที่แล้ว

      Okay, thanks I have mailed him right now

  • @Numb2Fear
    @Numb2Fear 2 ปีที่แล้ว

    If buy a option and sell it the next day can I use the profit from that to buy another option that day or do I have to wait until the next day

  • @Nikola83ify
    @Nikola83ify 3 ปีที่แล้ว +1

    What about poor man's covered calls (LEAPS + covered calls)? Can I do that on a cash account?

  • @islandboy1506
    @islandboy1506 2 ปีที่แล้ว

    @vincentDesiano , with a cash account , can you not sell calls and sell puts

  • @superlinksx
    @superlinksx 2 ปีที่แล้ว

    in a cash account you say you can only buy calls and buy puts .. but of course to close those calls and puts while scalping you have to be able to sell them as well correct? (i know this probably is kind of obvious but please clarify)

    • @InfinitelyManic
      @InfinitelyManic 2 ปีที่แล้ว +1

      With a cash account you can generally only buy and sell cash secured puts and covered calls.

  • @YoMamaBoyfriend007
    @YoMamaBoyfriend007 2 ปีที่แล้ว

    So where in TOS can you change it to a cash acct?

  • @alejandrofrancoo5002
    @alejandrofrancoo5002 2 ปีที่แล้ว +1

    You made an example for a 5k portfolio investing 1k and getting the same 1k as instant available balance after you sell , but what if you invest the entire 5k in one stock and you sell it the same day, am i going to have the 5k as instant available balance? or is it limited to just 1k and i have to wait for the other 4k to settle?

  • @alexlloyd2154
    @alexlloyd2154 2 ปีที่แล้ว

    Do what eigtb away what go worng place custom suoorot minors whine

  • @blackeshblacktillwhitishwh5541
    @blackeshblacktillwhitishwh5541 2 ปีที่แล้ว

    I'm not really understand the language if you could give more graphic will help. Best regards.

  • @r.a.m.5933
    @r.a.m.5933 2 ปีที่แล้ว

    I've read that you can downgrade your robinhood account to become a cash account. Is that correct ? Or am I missing some information ?

  • @josephsaeteurn9158
    @josephsaeteurn9158 3 ปีที่แล้ว +1

    i have cash account and i can do all the options such as buy, sell, spreads, etc. is this video out dated?

  • @christisgodd
    @christisgodd 3 ปีที่แล้ว

    Can you use cash account to buy IPO

  • @ducus2318
    @ducus2318 3 ปีที่แล้ว

    Thank buddy! Very informative

  • @drehsanhabib2177
    @drehsanhabib2177 3 ปีที่แล้ว

    Excellent ,

  • @mhlemon1993
    @mhlemon1993 3 ปีที่แล้ว

    Hi how are I have question please
    If anybody E*TRADE account has more than 25k how many trades he can do one day is there any restriction for that ?

  • @shannonalanna9538
    @shannonalanna9538 3 ปีที่แล้ว

    Great explanation, thanks!

  • @Kaizen_Trading
    @Kaizen_Trading 2 ปีที่แล้ว

    can you trade spreads in a cash account on the SPX?

    • @remodelingjob
      @remodelingjob 2 ปีที่แล้ว

      No you can't trade any spreads.

  • @dlaa3832
    @dlaa3832 3 ปีที่แล้ว

    Great info. Thank you

  • @lularuelle2297
    @lularuelle2297 4 ปีที่แล้ว

    What are the option?

  • @truckinforever985
    @truckinforever985 4 หลายเดือนก่อน

    How you been vince

  • @SuperRapstar1
    @SuperRapstar1 3 ปีที่แล้ว

    Very HELPFUL! THANKS A LOT!

  • @gandalfearth5336
    @gandalfearth5336 2 ปีที่แล้ว

    One doubt. With a cash account you can buy a put of a stock without having any share of this stock? I guess there are some strategies with options that you can not do with a cash account in comparison with a margin account. Hope you can clarify me this doubt. Thanks in advance!

    • @VincentDesiano
      @VincentDesiano  2 ปีที่แล้ว

      Yes you can buy a put on a cash account.

    • @gandalfearth5336
      @gandalfearth5336 2 ปีที่แล้ว

      @@VincentDesiano Thanks a lot for the feedback and fast answer. Subscribed!

    • @sachinpatil7235
      @sachinpatil7235 ปีที่แล้ว

      @@VincentDesiano can we do that on robinhood ??

  • @kidshaw
    @kidshaw 4 ปีที่แล้ว +4

    can you do a video on Naked Options vs Covered Options?

  • @buhumal
    @buhumal 3 ปีที่แล้ว

    Is it 3 or 4 trades per week?

  • @fastcache
    @fastcache ปีที่แล้ว

    Thank you sir!

  • @lakshitlohat572
    @lakshitlohat572 4 ปีที่แล้ว +2

    Nice..video..👍👍
    Did this PDT rule applied on International clients ..Traders living out of USA..
    Reply in same..
    Tc..

    • @michaelpenknife3921
      @michaelpenknife3921 3 ปีที่แล้ว

      It doesn't matter where you live, it matters with whom you trade. If you trade with a US based broker, PDT rule will apply. If you trade with a broker that is not based in the US, PDT rule will not apply.

  • @notagudgamer5436
    @notagudgamer5436 4 ปีที่แล้ว

    if i open a spread with 0dte and it expires worthless does that count as a day trade?

  • @partyfavors9238
    @partyfavors9238 3 ปีที่แล้ว +1

    Cash for me is better because I am novice and I just want to take it slow

  • @410nikko6
    @410nikko6 2 ปีที่แล้ว

    Great Video...thnx Much

  • @LaCatHTF
    @LaCatHTF 3 ปีที่แล้ว

    Can you still trade options on a cash account?

    • @youknthetruth1703
      @youknthetruth1703 2 ปีที่แล้ว

      No one is answering this question

    • @VincentDesiano
      @VincentDesiano  2 ปีที่แล้ว

      Yes you can trade options on a cash account

  • @Moneymaking_SPG
    @Moneymaking_SPG ปีที่แล้ว

    Great video thanks

  • @anon003
    @anon003 2 ปีที่แล้ว +1

    What does happen in a Cash Account when an ITM Put is automatically exercised but you do not own the underlying asset? (No short position possible because it's a cash account and not a margin account)

  • @midnighttoker2588
    @midnighttoker2588 3 ปีที่แล้ว

    So I can day trade unlimited options with a cash account on Webull?

    • @VincentDesiano
      @VincentDesiano  3 ปีที่แล้ว +1

      Yes, but you can only trade the amount you have settled

    • @midnighttoker2588
      @midnighttoker2588 3 ปีที่แล้ว

      @@VincentDesiano thank you brother 🙏

  • @MrFreedomforyou
    @MrFreedomforyou 3 ปีที่แล้ว

    Great video

  • @Brandonleetrader
    @Brandonleetrader ปีที่แล้ว

    I like the intro…

  • @Faraz70
    @Faraz70 4 ปีที่แล้ว

    If I don't use margin in an margin account, do I still have to pay interest on it?

    • @VincentDesiano
      @VincentDesiano  4 ปีที่แล้ว +1

      No sir. Only the margin you use & don't pay back if you lose it.

  • @greenlifegardenhomediy3414
    @greenlifegardenhomediy3414 2 ปีที่แล้ว

    Just what I wanted to know. Thank you!

  • @derekyoung4637
    @derekyoung4637 2 ปีที่แล้ว

    You said you can't day trade options with cash account but right after u said u could?🤔

    • @VincentDesiano
      @VincentDesiano  2 ปีที่แล้ว

      That’s not what I said. There is a difference between trading call & put options & trading complex option strategies like spreads or condors which require margin. On a cash account you cannot trade option spreads, condors, butterflies. You can only trade directional calls & puts.

    • @derekyoung4637
      @derekyoung4637 2 ปีที่แล้ว

      @@VincentDesiano Thank you for clarification I really appreciate you.First time watching your vids,very Informative.👍

  • @irajlamar
    @irajlamar 3 ปีที่แล้ว +1

    So if I have $25k and over in margin account. I can scalp 100 times per day if I want?

    • @jmballin4897
      @jmballin4897 3 ปีที่แล้ว

      Yes

    • @jmballin4897
      @jmballin4897 3 ปีที่แล้ว +1

      Anything over 25k allows you to day as many trades as you want

  • @BrokenStatues7
    @BrokenStatues7 4 ปีที่แล้ว +2

    I have a cash account > 25k on robinhood and I’ve been trading options. I have not seen a restriction 👀

    • @darkxgamesyt206
      @darkxgamesyt206 4 ปีที่แล้ว

      So you have a cash account and able to trade options on robinhood? I would like to do the same.. Do you have to wait 2 days for money to clear?

    • @VincentDesiano
      @VincentDesiano  4 ปีที่แล้ว +4

      You can still trade options! Expect you are under PDT restrictions.

  • @brewdog8568
    @brewdog8568 2 ปีที่แล้ว

    You can now time for an update video 🙌

  • @blueloo1513
    @blueloo1513 3 ปีที่แล้ว +1

    Very good

  • @MaxDaBeast29
    @MaxDaBeast29 4 ปีที่แล้ว

    GOAT 🐐

  • @Nikola83ify
    @Nikola83ify 3 ปีที่แล้ว

    Thanks for the video. What about cash covered calls on a cash account? Can I still take a premium if I have enough cash to cover the whole position?

    • @Nikola83ify
      @Nikola83ify 3 ปีที่แล้ว +1

      I've just found the answer bellow. :)

    • @angelhuerta6037
      @angelhuerta6037 ปีที่แล้ว

      @@Nikola83ify what was it

  • @charlierob5659
    @charlierob5659 3 ปีที่แล้ว

    This has changed all you have to do is email them and they will change your account to cash

  • @agent_of_truth
    @agent_of_truth 2 ปีที่แล้ว

    PDT Rules do not apply to futures trading.

  • @abofinance998
    @abofinance998 3 ปีที่แล้ว

    Boss 👏