Options account agreement

Additionally, Capital One Investing cannot advise you, nor comment concerning the nature, risk or suitability of any security, transaction or investment method. PRIVACY POLICY and that you agree to be bound by all such TERMS AND CONDITIONS. If an order cannot be cancelled you agree to be bound to the results of the original order. Capital One Investing will close out any positions and you shall be liable for all losses, including commissions, where underlying securities delivered are not in good transferable form or not free and clear of any lien, encumbrance, claim, pledge, charge, restriction or impediment to transfer of any nature whatsoever. Trade is only a request and, as such, cancellation of any given trade is not guaranteed. Market orders are subject to immediate execution and, as a general rule, cannot be cancelled during market hours. Options Account, in order to bring your Options Account into compliance with such position limits.

Capital One Investing will act as your broker for the purpose of buying and selling securities on your instructions. Privacy Policy and Terms and Conditions, as well as annual and semiannual audited and unaudited reports for Capital One Investing and other basic communications. Capital One Investing reserves the right to pass on to you all fees imposed by an agent for any corporate action. In the event of a direct conflict between this Agreement and the Account Agreement, the terms of this Agreement shall control for matters or services related to this Agreement. However, Capital One Investing may require deposits at the time of purchase or sale. You agree to pay the full aggregate price for the underlying securities covered by the options contract and understand that, generally, you will be charged at least one commission in connection with the exercising of any option. You agree to make appropriate changes to information for any changes in your financial situation, knowledge and investment objectives as you deem these changes material to any options transactions.

Rates link at the bottom of the Capital One Investing website. You agree that Capital One Investing reserves the right, in its sole discretion, to rely upon any notice or instruction given to it orally or in writing under this Agreement which it reasonably believes is given to it by or on your behalf. You warrant at the time of such delivery that you will have good, valid and marketable title or right to sell and transfer all such underlying securities on the terms of this Agreement. Should Capital One Investing exercise such an option and liquidate the underlying securities for your account and at your sole risk you shall be charged two commissions: one for the exercise of the option, another for the purchase or sale of the securities underlying the option. You will provide Capital One Investing of a notice of exercise with respect to an option held by you via the Capital One Investing Website. Capital One Investing processes requests to cancel orders on a best efforts basis and you agree not to hold Capital One Investing liable if it is unable to cancel an order. You are willing and able to undertake the financial risks and hazards of options trading and agree that you will in no way hold Capital One Investing responsible for any option trading decisions however arrived at by you.

Capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to them in the Account Agreement. You understand that the failure on your part to notify Capital One Investing of your desire to exercise any option may result in the option expiring worthless, even though it may have a monetary value on the expiration date. You agree to advise Capital One Investing promptly of any errors or omissions in any transaction or in the handling of your account. Capital One Investing further reserves the right to change its fees anytime by posting a modified fee schedule on the Capital One Investing web site. Capital One Investing does not give legal or tax advice. In options transactions, acting alone or in concert with other, you agree not to exceed position or exercise limits imposed by an exchange or other market with respect to options trading. Capital One Investing has no obligation or responsibility to exercise any option without specific instructions from you.

You are solely responsible for the trades entered, and will not hold Capital One Investing or any of its employees liable for those investment decisions. You understand and agree that, unless otherwise agreed in writing, Capital One Investing is not, and will not be, obligated under any circumstances to repurchase any option. You acknowledge and agree that Capital One Investing may, in its sole discretion, determine that there is danger of financial loss of money to Capital One Investing or you, request additional margin deposit, purchase or sale of additional stock, or the closing out of an option position. Changes required by law, however, will be effective immediately. You are of the age of majority as defined by the laws of the state of your home of record in order to enter into this Agreement and be bound thereby. You are also aware that for certain strategies, Capital One Investing may restrict or limit your ability to enter orders, or your orders may be required to be entered in such a way or in a certain order, in an attempt to reduce customer exposure. It shall be your sole responsibility to exercise, in a proper and timely manner as set forth by the Options Clearing Corporation and Capital One Investing, any right or privilege or obligation of any put option, call option or other option which Capital One Investing may purchase, handle or carry for your Options Account. Capital One Investing reserves the right to change or terminate this Agreement and you hereby agree to consent to consult the Capital One Investing Website periodically to review the most up to date Agreement. Your capabilities are based on your income, net worth, experience and knowledge of securities investing, and your investment objectives.

Capital One Investing may exercise such option, but is under no obligation to do so and you hereby agree to waive all claims for damage which you may have at the time or any time thereafter against Capital One Investing arising out of the fact that the option was or was not exercised. You are also aware that on certain days, options trading may cease, which could result in financial loss of money to you. You understand that the purchasing or selling of options may involve a high degree of risk and speculation. Depositary Institution, you hereby specifically acknowledge your understanding that investments through Capital One Investing are not insured by the FDIC or NCUA; are not a deposit or other obligation of, or guaranteed by, the Depository Institution; and are subject to investment risks, including possible loss of money of the principal amount invested. FIFO allocation procedures is available upon request. Transactions also shall be subject to the provisions of federal and state securities laws, as amended, and to the rules and regulations of the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System. You also understand that Capital One Investing may be required to report your position to regulatory authorities in a class of options having the same underlying security. Your order will only be cancelled if your cancellation request is received in the marketplace and matched up with the existing order before the order is executed.

You understand that when transactions on your behalf are to be executed in options traded on more than one exchange, Capital One Investing or its correspondent may use discretion in selecting the market in which to enter your order. Failure to provide prompt notice of any errors will be deemed to constitute acceptance of the accuracy of all information sent to you. This Agreement amends, supplements and incorporates by reference the Account Agreement between you and Capital One Investing. You are capable of evaluating and bearing the financial risks attendant to the writing, selling, or purchasing of options. Capital One Investing reserves the right to refuse any account and to decline or change any order at its sole discretion. Capital One Investing reserves the right to require your account to have available funds to support the cost of any exercise prior to allowing you to exercise an option, or may reduce the number of options exercised based on the available funds in your account. You will deliver underlying securities in good transferable form as is customary for that type of security and the underlying securities shall be made free and clear of any lien, encumbrance, claim, pledge, charge, restriction or impediment to transfer of any nature whatsoever. Customer in respect of any Contract or Account. This Agreement is a valid and binding agreement of Customer, enforceable against Customer in accordance with its terms.

Contracts which are required under Applicable Law. Futures Contract or to exercise any Option Contract. Agreement may be oral or written. CFTC, except as otherwise disclosed to Goldman in writing. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Goldman in writing if any representation or warranty made by Customer ceases to be accurate and complete in any material respect.

Contract, in such form and in such amounts as may be required from time to time by Applicable Law or by Goldman in its sole discretion. CEA and the NFA pertinent to commodity pool operators and commodity trading advisors and has determined that it and any person that has trading authority or control over any or all of its Accounts are in compliance with such requirements. Certain Option Contracts sold by Customer are subject to exercise at any time. Floor Brokers and Clearing Brokers. Exchanges where Goldman is not a clearing member, unaffiliated clearing brokers, which will act as brokers and agents in connection with transactions in Contracts for the Accounts. Goldman shall use reasonable efforts to contact Customer promptly upon its allocation of an exercise notice to Customer.

Customer, to require Customer to reduce open positions carried with Goldman, and to refuse acceptance of orders to establish new positions. Regulatory Organizations or the CFTC. Goldman any property required to be delivered by Customer under any such Contract at such time and in such manner as may be required by Goldman. Customer to Goldman pursuant to this Agreement. Agreement pursuant to the Federal Deposit Insurance Act. No provision of this Agreement shall in any respect be waived or modified unless such waiver or modification is in writing and signed by authorized representatives of each of Goldman and Customer. Financial and Other Information. Benefits of BlackRock Advisory Relationship. Applicable Law, such inconsistent or invalid provision shall be deemed to be superseded or modified to conform to such Applicable Law, but in all other respects this Agreement shall continue in full force and effect.

Customer as it appears on the books and records of Goldman, such service to be effective ten days after mailing. Agreement constitutes the entire agreement between Customer, Advisor, if any, and Goldman with respect to the subject matter hereof and supersedes any prior agreements between the parties with respect to such subject matter. Goldman receives acceptable and timely instructions from Customer indicating the action to be taken. Federal Deposit Insurance Act. Account or to transfer all such positions to another FCM. Customer, The Goldman Sachs Group, Inc. Customer after the close of trading on the day on which such notices have been allocated to Goldman by the applicable Exchange. BlackRock Asset Management International Inc.

Goldman, or any clearing brokers or floor brokers, to comply with Applicable Law. Japan provided that, in the case where such successor is not The Goldman Sachs Group, Inc. Agreement as of the date set forth above. In no event shall Goldman be liable for consequential, incidental or special damages. Successor Entity immediately after the assignment shall not be materially weaker than the creditworthiness of Goldman immediately prior to such assignment. The Goldman Sachs Group, Inc. Goldman to Customer, and such positions or advice may be inconsistent with any advice to Customer.

Goldman, and any purported assignment or delegation without such consent shall be void. Applicable Law and applicable securities laws. Customer shall be bound by any allocation made to it pursuant to such procedure. All oral communications shall promptly be confirmed in writing. Goldman to be commercially reasonable. Customer shall be bound thereby. Interest in or Control of Accounts.

Contract Currency with the applicable Exchange. Agreement is and will be accurate and complete in every material respect at the time provided. Customer were the customer thereunder. Goldman may exceed those of the applicable Exchange. Goldman, and hereby consents to such disclosure. This Agreement shall inure to the benefit of, and be binding upon, each of the parties and their respective successors and assigns. Amended and Restated Futures and Options Account Agreement.

Goldman, in its sole discretion, may, but shall not be obligated to, accept from other brokers Contracts executed by such brokers and to be given up to Goldman for clearance or carrying in any Account. Goldman shall not be deemed to have breached any obligation to Customer if no such notice is given. Base Currency on any day in a commercially reasonable manner based on current exchange rates between the Base Currency and the Contract Currency. Contracts in each Account in accordance with the terms of this Agreement. Goldman may from time to time reasonably request. Termination of this Agreement shall not affect any transaction entered into before receipt of notice of such termination and shall not relieve any party hereto of any obligations incurred before such receipt.

Margin and Other Obligations. Legal contract between an option investor and a brokerage firm whereby the investor confirms that he or she understands the issues and risks involved in options trading and undertakes to follow the rules and regulations of the options exchange. Legal contract between two parties whereby, in exchange for a fee, one of the parties has the right but not the obligation to buy or sell a specified item at a specified price up to a specified date. YES NO 10 people found this helpful. Legal contract between a potential buyer and the seller of a property whereby in exchange for a fee the seller gives the potential buyer, up to a certain date, the first chance to buy that property. Companies like K Mart and Wal Mart offer an option agreement for warranties on their products, within a two year span of time after purchasing.

If the investor fails to return the option agreement within 15 days, no new option positions may be opened and the investor will be limited to closing transactions only until the option agreement is signed and returned. All new option accounts must be approved by the registered option and security futures principal prior to the first option trade. Before you can trade options, your broker must approve your brokerage account for options trading. The types of option trading that occurs at each level and even the number of levels may vary among brokerage firms. The information you provide in your options agreement allows your brokerage firm to determine which option trading levels, if any, you qualify for in your account. These trading levels determine the types of option trades you can execute in your account. In an options agreement, you will need to provide information that will assist your broker in determining your knowledge of options and trading strategies, as well as your general investing knowledge and your financial ability to bear the risks of options trading. Based on the information you provide, your broker will determine whether options trading is suitable for you and, if so, what types of options trading may occur in your account.

This publication contains basic information about the characteristics of options as well as detailed examples about the risks associated with various options and options trading strategies. Level 1 generally represents the lowest level of risk, while level 5 generally represents the highest level of risk. Apart from the options agreement, SEC and FINRA rules require brokers to provide certain disclosures to all potential options investors. You may ask your brokerage firm to provide you with a list and description of each option trading level it has available for its customers. Make sure you read this publication and carefully consider the information in it before you begin trading options. An indication of what types of options you would like to trade. Are they an employee of another brokerage firm? Name, Social Security Number, Address, and DOB are required.

Remember that anything dealing with the creation of money is regulated by the Federal Reserve. The customer must verify account information given over the phone within 30 days. Beyond that, a customer can refuse to provide more information and the firm is under no obligation to try to obtain more. Our mission is to create a smarter world by simplifying and accelerating the learning process. Is the applicant a board member or director of any company? The legal right of the broker dealer holding the margin account to further pledge those securities to a 3rd party bank as collateral for loans.

Brainscape is a web and mobile study platform that helps you learn things faster. These loans are the source of the cash given to customers for further asset purchases. If a customer cannot be identified, the account is not closed, but identification must ultimately be verified. This agreement illustrates that the investor understands the rules set forth by the options clearing corporation and that he or she will not be an undue risk to the brokerage firm. An investor is generally required to understand the option disclosure document, which highlights various options terminology, strategies, tax implications and unique risks, before the broker will allow the investor to trade options. An agreement between two parties that provides one of the parties with the right but not the obligation to buy, sell or obtain a specific asset at an agreed upon price at some time in the future.