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:
- Sell Calls to Open Covered
- Buy Calls to Close
- All trades approved for Level 1
- Buy Calls or Puts to Open
- Sell Calls or Puts to Close
- All trades approved for Level 2
- Option Spreads*
- All trades approved for Level 3
- Sell Puts to Open Naked
- Buy Puts to Close
- 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.