What is Level 1, 2, 3, 4 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
- New: Covered Writes
Level 2: All trades approved for Level 1 Buy Calls or Puts to Open Sell Calls or Puts to Close
- New: Covered Writing and Purchasing Calls & Puts
Level 3: All trades approved for Level 2 Option Spreads*
- New: Covered Writing, Purchasing Calls & Puts, and placing option spreads*
Level 4: All trades approved for Level 3 Sell Puts to Open Naked Buy Puts to Close
- New: Covered Writing, Purchasing Calls & Puts, ability to place option spreads* and naked puts
*Option Spreads cannot be traded online. Contact Scotia iTRADE to submit an Option Spread Order.