Firstly is it possible in Robinhood to use margin money for buying selling options even if you have cash on hand?
Secondly I have never used margin before but have enabled it now and thinking of using it.
What are the risks of this?
Leveraging margin in Robinhood for options
byu/TowerStreet1 inoptions
Posted by TowerStreet1
3 Comments
You’re taking a loan to buy stocks/options/securities that could lose value but you will still be obligated to pay back the loan. You are also paying an interest rate to take out the loan. At a minimum, you should be planning to make at least as much return as that interest or else you’d be better off only investing your own money.
No, its not possible on RH.
Your question doesn’t make sense to me. Margin is when you don’t have cash on hand.