While Firstrade does not require a minimum balance to open an account or invest in equity securities, we do require a minimum equity to place certain option orders.
The following table lists the option strategy and the minimum equity required to place option orders:
Option Strategy | Minimum Equity Required |
Covered Calls | No Minimum |
Cash-Secured Equity Puts | No Minimum |
Buying Puts & Calls | No Minimum |
Spreads, Straddles, Butterfly, & Condor | $2,000 + Margin Required |
Uncovered Puts | $10,000 + Margin Required |
Disclosures
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Firstrade does not guarantee favorable investment outcomes, and there is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, please read the Characteristics and Risks of Standardized Options before you begin trading options.