Common use of Right to Exercise Discretion Clause in Contracts

Right to Exercise Discretion. InvestDirect will have sole discretion to determine whether or not to accept any order from the Client for a trade in an Option. Furthermore, InvestDirect may take any action with respect to an Option that InvestDirect in its sole discretion determine should be taken if the Client fails to give InvestDirect timely instructions, but InvestDirect has no obligation to take such action. Whenever InvestDirect deems it necessary or advisable for its protection to sell any securities in InvestDirect’s possession or to buy in any securities of which the Client’s account may be short, or to buy or sell short Options for the Client’s account and risk, such sale or purchase may be made in InvestDirect’s sole discretion without advertising the same and without prior notice, demand, tender or call to the Client. In the case of insolvency, death or attachment of the property of the undersigned InvestDirect may, with respect to any open positions take such steps as it considers necessary to protect itself against loss.