Is it OK to have margin privileges in my account and/or get approved for the most advanced options trading tier? It makes me nervous because doesn’t this allow me to make trades where I might lose more money than what I have in my account?
Yes, it's OK to have a margin-enabled account (the ability to trade with borrowed money). In fact, you NEED a margin-enabled account in order to trade income-generating option spreads. However, it's important to understand that just because you have a margin account doesn't mean you'll be USING the margin.
Brokerages require you to have a margin account in order to trade spreads because if you ever get assigned on a short option position, you might need to use your margin. However, in Module 5 of ITM, Rose will teach you how to manage your trades and what precautions to take so that you can prevent these kinds of situations.
Ever heard the phrase "with great power comes great responsibility?". That applies here. As long as you understand what you're doing, having margin trading privileges in your account is actually a wonderful thing that enables you to generate income with your trades, and it's nothing to be afraid of 🙂