A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An agreement that many investors must make with a brokerage in order to trade in options with that brokerage. The option agreement ensures that the investor has enough financial resources and is sufficiently familiar with the parameters of option trading in order to make sound and legal investment decisions.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A formal written document that must be signed by an investor and put into the possession of the brokerage firm before the investor may trade options. The purpose of the agreement is to help assure that the investor has the financial resources and appropriate goals to qualify for trading options and that sufficient information in the form of an Options Clearing Corporation prospectus has been supplied so that the investor can understand the rules and risks.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.