Trading and investing app Robinhood revealed on Wednesday that it has made options trading in cash accounts available on its platform.
Previously, The US broker’s advanced customers with a cash account were able to trade stocks and exchange-traded funds (ETFs). With this new feature, they can now trade options as well. The official announcement noted that options trading is a top demand from its advanced customers.
Robinhood explained that under pattern day trading regulations by the Financial Industry Regulatory Authority (FINRA), the number of day trades customers can make in a margin account was limited to three trades within five business days. However, this rule no longer applies to cash accounts holders.