Please note that some stocks including Pink Sheets or Bulletin Board Stocks are not eligible for margin borrowing. Bonds: Most corporate, treasury, municipal, and government agency bonds are eligible for margin borrowing.
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Margin ability and margin requirements are subject without advance written notice to change based on liquidity, bond ratings, concentrations, and other risk factors. Money market funds, certificates of deposit CDsannuities, and options are not available as collateral for margin borrowing.
Maintenance Calls: Maintenance calls are due in four 4 business days under normal conditions. Exchange calls are due in one business day. House Required Minimums: If equity drops below house required minimum, or a call is issued for any other reason, you may be required to options rates sell securities or deposit additional funds promptly.
Concentrated Accounts: Margin maintenance is higher for concentrated accounts and requirements may vary per security. Increased Maintenance Requirements: From time-to-time, we may be required by our clearing firm to increase maintenance requirements due to overall firm concentration, or unusual market conditions.
We further reserve the right to increase the options rates at our sole discretion. European Style Option Spreads To be considered a spread, the long and the short side must expire on the same day.
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If the expiration dates are not the same the short side will be treated as naked. Maintenance Requirement: The short market value of the LEAPS will be deducted from the equity when figuring maintenance requirements for accounts holding these positions.
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- An interest rate option is a financial derivative that allows the holder to benefit from changes in interest rates.
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- The strike price may be set by reference to the spot price market price of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium.
- The Bottom Line Options are contracts that give option buyers the right to buy or sell a security at a predetermined price on or before a specified day.
Options rates value of options rates long stock will be valued at the price of the stock or the strike price of the option, whichever is greater. Margin Risks We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account.
Before trading stocks in a margin account, you should carefully review the margin agreement provided by your broker. Consult your broker regarding any questions or concerns you may have with your margin accounts.
What are options?
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, options rates will open a margin account with the firm. It is important that you fully understand the risks involved in trading securities on margin.
These risks include the options rates You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities in your account. The firm can force the sale of securities in your account.
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You also will be responsible for any shortfall in the account after such a sale. The firm can options rates your securities without contacting you.
Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case.
Open account Forex Options risk warning An option is categorised as a red product as it is considered an investment product with a high complexity and a options rates risk. You should be aware that in purchasing Foreign Exchange Options, your potential loss will be the amount of the premium paid for the option, plus any fees or transaction charges that are applicable, should the option not achieve its strike price on the expiry date Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation you may subsequently be called upon to pay margin on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated. If you write an option, the risk involved is considerably higher than buying an option.
Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, options rates if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interest, including immediately selling the securities without notice to the customer.
You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
These changes in firm policy often take effect immediately and may result in the options rates of a maintenance margin call. Your failure to options rates the call may cause the member to liquidate or sell securities in your account.
Options on Average One-Day Interbank Deposit Rate
You are not entitled to an extension of time reviews icyu option a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension. Industry regulations may limit, in whole or in part, your ability to exercise voting rights options options rates securities that have been lent or pledged to others.
You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials. Click here for some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Contact eOption regarding any questions or concerns you may have about margin accounts.