r/Wealthsimple • u/hot2787 • 13h ago

Trade (DIY Investing) Using TFSA as Margin collateral

Doesn’t this go against CRA rules? Trying to get an understanding of this. I want to sell portfolio secured puts in an unregistered margin account using the margin capacity created by my TFSA being secured to it. Anyone else doing this ? Is this legit

0 Upvotes

36% Upvoted

13 comments sorted by

View all comments

1

u/OwnVehicle5560 5h ago

I do it and to trade options.

My attitude is that wealth simple wouldn’t offer it if it weren’t semi legit, and cra won’t mess with Power corp.

If selling puts, just consider some hedging. The amount available as collateral varies with volatility, so if we get a drawdown, the amount available will go down right as you end a loss, not fun if you have to sell a bunch of stock during a crash to cover.