Trading on Margin Clause Samples
Trading on Margin. 5.1 The Client agrees and undertakes that the equity must be, in any case, equal or more than the total margin requirement of the Client’s account; moreover, the Company shall have the right to liquidate the account assets and/or notify the Client of the need to make margin deposits promptly by bank transfer of available funds, or by any other means that the Company may find if the cash-to-margin ratio is less than the ratios mentioned in this clause and/or the ratios agreed upon with the Company.
5.2 To avoid any ambiguity or doubt, the liquidation of account assets may be conducted and completed at any time and if the equity is equal to or less than the total margin requirement of the Client’s account regardless of the settlement timing and/or relevant market conditions, the Company reserves the right to modify the ratio of liquidation of account assets to Cash Margin 20% or less for any account type and any other ration the Company deems appropriate. The Client shall be notified of such modification via the trading policies announced from time to time on the Company's Website, which are an integral part of the Agreement.
5.3 If the Client holds one or two accounts of any kind, the Client acknowledges and agrees that they owe the Company with a negative balance, if any; in this case, the Client agrees that the Company has the right to make a settlement between the accounts and set-off to cover the negative balance from other accounts or new deposits.
5.4 The Client acknowledges that the margin cash requirement is a guarantee for each buy and sell order depends on the margin financing ratio applied to the Client Account.
5.5 The failure of the Company at any time to request and/or notify the Client to deposit cash to maintain the margin ratio shall not constitute a waiver of the Company’s rights to do so at any time thereafter and shall not constitute any liability of the Company towards the Client.
5.6 The Client agrees that the margin requirements may be changed by the Company and that such change shall apply to all buy and sell orders in addition to the transactions that will be taken place in the future.
5.7 In such cases where the Client does not meet his obligations towards the margin requirements, the Client Account becomes subject to suspension and liquidation under clause 11 below.
Trading on Margin. Yes No How Long Yes No How Long Yes No How Long Yes No How Long Yes No How Long Yes No How Long ACCOUNT OBJECTIVE(S) (RANK BY PRIORITY 1=PRIMARY TO 4=LEAST IMPORTANT) DIVIDEND AND PREMIUM INCOME HEDGING TRADING PROFITS SPECULATION DOES THIRD PARTY HAVE AUTHORIZATION TO TRADE THIS ACCOUNT? YES NO NAME OF THIRD PARTY I have read and understand the option agreement and conditions on the reverse side. I herewith acknowledge receipt of the current Options Disclosure Document, Characteristics and Risks of Standardized Options. I understand that I am to receive an updated options disclosure document upon its becoming available. I ACKNOWLEDGE THAT THE AGREEMENT ON THE REVERSE SIDE CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE. DATE DATE REP NUMBER: ACCOUNT NUMBER: COMPLETED BY CUSTOMER YES NO STATEMENT FOR UNCOVERED OPTIONS WRITERS RECEIVED DATE DISCLOSURE DOCUMENT SENT REP SIGNATURE
a. COVERED WRITING (CALLS ONLY) b. PURCHASING CALLS/PUTS/STRADDLES c. SPREADING d. PUT WRITING e. UNCOVERED CALL WRITING f. UNSOLICITED TRANSACTIONS ONLY g. OTHER BETA CODE 1 YES NO 2 YES NO 3 YES NO 4 YES NO 5 YES NO YES NO COMMENTS: BRANCH MANAGER/ROP APPROVAL DATE SROP REVIEW DATE Signature Second Party Signature A Sterne, Agee & ▇▇▇▇▇ Group Company Op t io n A g r eeme n t ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇ Birmingham AL 35203 Gentlemen: In consideration of your carrying option position(s) for my account and your agreeing to act as brokers or dealers for me in effecting option transactions, I agree as follows:
1. All option and security transactions shall be subject to the constitutions, rules, regulations, customs and usages of the Chicago Board Option Exchange (CBOE), the American Stock Exchange (ASE), the Options Clearing Corporation (OCC), and the other exchanges or markets, if any, where the transactions are executed by you or your agents, and where applicable, to the provisions of the Securities Exchange Act of 1934, I agree, that I, acting alone or in concert with others, will not violate the position or exercise limits set forth in the OCC Prospectus and Rules 4.11 and 4.12 of the CBOE and Rules 904 and 905 of the ASE.
2. I agree that I am responsible for making all final decisions as to transactions effected in this account and understand each order I enter to buy or sell must be complete as to security, quantity, price and duration of the order.
3. I am aware that options are of limited duration and the responsibility for exercising or selling the option will be entirely mi...