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 <ul class="list articleAnswer"><li class="list__item articleAnswer">Sell Calls to Open Covered</li><li class="list__item articleAnswer">Buy Calls to Close </li></ul>Level 2 <ul class="list articleAnswer"><li class="list__item articleAnswer">All trades approved for Level 1</li><li class="list__item articleAnswer">Buy Calls or Puts to Open</li><li class="list__item articleAnswer">Sell Calls or Puts to Close</li></ul>Level 3<ul class="list articleAnswer"><li class="list__item articleAnswer">All trades approved for Level 2</li><li class="list__item articleAnswer">Option Spreads*</li></ul>Level 4 <ul class="list articleAnswer"><li class="list__item articleAnswer">All trades approved for Level 3</li><li class="list__item articleAnswer">Sell Puts to Open Naked</li><li class="list__item articleAnswer">Buy Puts to Close</li></ul>Level 5 <ul class="list articleAnswer"><li class="list__item articleAnswer">All trades approved for Level 4</li><li class="list__item articleAnswer">Sell Calls to Open Naked</li></ul>*Option Spreads cannot be traded online. Contact Scotia iTRADE to submit an Option Spread Order.

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