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Greetings, Gordis, and welcome. You asked:

I trade my 401K with e*trade, but they won't allow me to short. Is this a legal restriction? Does anyone know whether it's possible to short, or buy puts and calls perhaps, in a 401K account?

Those types of trades are all considered forms of loans against the account secured by other assets within it. By law, you cannot use an IRA as collateral against a loan, hence those types of trades are prohibited by statute.


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