What is Level 1/2/3/4/5 options trading?

Your option trading account is approved for a level of option trading, which determines the type of option orders you may submit.

The type of orders approved for each level are:

Level 1

  • Sell Calls to Open Covered
  • Buy Calls to Close

Level 2

  • All trades approved for Level 1
  • Buy Calls or Puts to Open
  • Sell Calls or Puts to Close

Level 3

  • All trades approved for Level 2
  • Option Spreads*

Level 4

  • All trades approved for Level 3
  • Sell Puts to Open Naked
  • Buy Puts to Close

Level 5

  • All trades approved for Level 4
  • Sell Calls to Open Naked

*Option Spreads cannot be traded online. Contact Scotia iTRADE to submit an Option Spread Order.

Last updated September 1, 2020