There is a question during the set up process, that ask about my account profile. The choices are cash and cash&option. What are the differences. Benefits, risks and what do you think the better choic would be for a 24 year old
2006-12-21 11:31:25 · 3 answers · asked by I love sushi 4 in Business & Finance ➔ Investing
In an IRA you are allowed to buy put options BUT since you are asking what they are I wouldn't recommend them since by you asking you don't know how they work. A cash account is basically what an IRA is at an brokerage company. Basically you can't spend what you don't have like you can in a margin account
Just choose the regular cash account. Options can lose ALL your money quick. BTW congrats for investing at the age of 24. Most 24 year old girls are more worried about the lastest stuff at the GAP or Macy's than their financial futures. ONCE AGAIN CONGRATS.
2006-12-21 11:35:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
i didn't think options were even allowed in IRA accounts...news to me at least!
make sure the acct. you are opening IS an IRA acct.
and so&so is right, options are for advanced traders to dabble in, not someone who is unfamiliar, so a cash acct. is quite adequate.
2006-12-22 18:12:39 · answer #2 · answered by Sizzle Pizzle 3 · 0⤊ 0⤋
www.ms.applemomb.com
2006-12-21 11:32:48 · answer #3 · answered by Anonymous · 0⤊ 1⤋