Options Trading Tutorial

What is the meaning of the following statement on Scottrade regarding Money Direct Funding?

"For the first three business days, clients will be restricted to purchase only marginable securities priced at or above $4.00 per share (No options or non-marginable securities)." Does this mean that for 3 days: A) I can't buy any stock less than $4.00? B) I can only buy that stock with margin? C) Does this occur every time I deposit money into Scottrade, or only the first time? Thank You!

Public Comments

1. This will occur every time you deposit money via Money Direct. It means you can't buy shares that are priced at or less than $4.00 for three days. After three days, you're free to buy whatever you want.