---
title: "Broker Margin Approval Levels Explained"
description: "Understand what type of options bot you can create based on your options level"
url: https://help.optionsautotrader.com/en/articles/127-broker-margin-approval-levels-explained
collection: "Broker Guides"
updated: 2026-06-16
language: en
---

# Broker Margin Approval Levels Explained

Understand what type of options bot you can create based on your options level

To fully utilize the **Options Auto Trader**, your brokerage account must have the correct options approval level. Different brokers have different approval requirements, so it’s essential to understand what level you need to execute your desired trades.

## **Step 1: Maintain the Recommended Minimum Account Size**

For the best experience with **Options Auto trader**, it is recommended that you have at least **$25,000 in your account**. This account size ensures you can access all **option selling strategies**, maximizing profitability and covering the cost of your subscription.

## **Step 2: Understand Brokerage Approval Levels**

Each brokerage has different option trading levels that determine what strategies you can use.

Here’s a breakdown of key approval levels using **Tastytrade** as an example:

-   **The Works Approval**:
    
    -   Full access to all strategies, including **defined risk** and **undefined risk trades**.
        
    -   Allows selling **naked puts and naked calls**.
        
    -   Enables trading on **futures**.
        
-   **IRA Works Approval**:
    
    -   No **naked put selling** allowed.
        
    -   You must use strategies like spreads to manage risk.
        
    -   Best suited for accounts with IRA restrictions.
        
-   **Basic Margin Account**:
    
    -   No **naked calls or futures trading**.
        
    -   Can trade **spreads and naked puts**.
        
-   **Limited Approval**:
    
    -   Only **spread trades** allowed.
        

## **Step 3: Verify Your Options Approval**

The **Options Auto trader** can only execute trades that your broker has approved. If you receive an error or notice that your trade won’t execute, check with your broker to confirm your approval level.

**Common Errors You Might See**:

-   “Not approved for futures trading.”
    
-   “Not approved for selling puts.”
    

## **Step 4: Set Up Your Trading Strategy Based on Your Approval Level**

If your approval level restricts certain trades, adjust your **Options Autotrader** bot accordingly:

-   If you **can't sell naked puts**, consider using **spread-based strategies** (e.g., IRA 1-1-2-2 bot).
    
-   If you **only have spread approval**, avoid trying to trade **naked options**.
    
-   If you **want full access**, ensure you request **unlimited risk approval** from your broker.
    

## **Step 5: Check Other Brokers' Requirements**

Each broker has different approval categories. For example:

-   **Schwab** uses levels like **Limited Risk, Moderate Risk, Increased Risk, and Unlimited Risk**.
    
-   **Tradier** has its own set of approval levels that define what you can trade.
    
-   **TastyTrade** uses different account types
    

## **To avoid trade rejections and maximize your Options Auto Trader experience:**

1.  Ensure your account has **at least $25,000** for full strategy access.
    
2.  Check your **broker’s options approval level** to confirm which trades you can execute.
    
3.  **Adjust your trading bot** based on your approval level to prevent errors.
    
4.  Contact your **broker** if you need a higher approval level for certain strategies.
    

By following these steps, you can smoothly execute trades and make the most of your **Options Auto Trader** strategies.  

**TERMS OF SERVICE:** Please be aware that continued use of the Options Auto Trader is subject to our [Terms Of Service](https://www.optionsautotrader.com/terms-of-service). If you have any questions or wish to review these terms, feel free to visit the website.