Option Disclosure Document

You should have appropriate experience before engaging in day trading. If you choose to borrow funds from your firm, you will open a margin account with the firm. Conversely, if the market value decreases, your available credit may proportionately decrease. Auto Trade customers agree to understand and follow the trade recommendations of the financial newsletter publisher in full, including all opening and closing trades. In general, unsecured wireless networks should be avoided and should never be used as a primary networking resource. In the event of a change, a revised Privacy Statement will promptly be posted to our Web site.

Characteristics & Risks of Standardized Options Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD).

Account Protection

Unsecured wireless networks pose a significant risk to computing assets and information. In general, unsecured wireless networks should be avoided and should never be used as a primary networking resource. Additionally, the following brochures describe the critical steps you can take to safeguard your financial accounts and help prevent identity theft. If you have any questions about how we keep your account information safe, please email us at support eoption. Non-traditional ETPs Exchange Traded Products employ sophisticated financial strategies and instruments, such as leverage, futures, and derivatives, in pursuit of their investment objectives.

Leveraged and inverse ETPs are considered risky. The use of leverage and inverse strategies by a fund increases the risk to the fund and magnifies gains or losses on the investment. You could incur significant losses even if the long-term performance of the underlying index showed a gain. Typically, these products have one-day investment objectives, and investors should monitor such funds on a daily basis.

Having a highly concentrated position in these types of products can also pose significant risks. Non-traditional ETPs are generally categorized as leveraged, inverse, or leveraged-inverse:. Additional risks may include adverse market condition risks, investment strategy risk, aggressive investment techniques risk, concentration risk, correlation risk, counterparty risk, credit risk and lower-quality debt securities risk, energy securities risk, equity securities risk, financial services companies risks, interest rate risk, inverse correlation risk, leverage risk, market risk, non-diversification risk, shorting risk, small and mid-cap company risk, tracking error risk, and special risks of exchange traded funds, among others.

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. 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, you 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 following:. It describes the terms under which we extend credit and charge interest and how your obligations are secured by property in your Account. We will charge interest on a daily basis on the credit we extend to you. If your daily-adjusted debit balance is reduced because you deposit a check or other item that is later returned to us unpaid, we may adjust your account to reflect interest charges you have incurred.

We reserve the right to charge interest on debit balances in the Cash Account. Periodically, we will send you a comprehensive statement showing the activity in your account, including applicable interest charges, interest rates and adjusted daily debit balances.

Daily Margin Interest Rate. It is calculated for each day by dividing the base margin interest rate by Note that the use of a day year results in a higher effective rate of interest than if a year of days were used.

Your margin interest rate will be adjusted automatically and without notice to reflect any change in the Base Rate. We compound interest on a daily basis.

Interest charges will accrue to your account each day. The interest rates described above do not reflect compounding of unpaid interest charges; the effective interest rate, taking into effect such compounding, will be higher. The Federal Reserve Board and various stock exchanges determine margin loan rules and regulations. When you purchase securities on margin, you agree to deposit the required initial equity by the settlement date and to maintain your equity at the required levels.

If the market value of stock held as collateral increases after you have met the initial margin requirements, your available credit may increase proportionately. Conversely, if the market value decreases, your available credit may proportionately decrease.

Initial margin requirements may change without prior notice. We may impose anytime and without prior notice more stringent requirements on positions that in our sole discretion involve higher levels of risk; for example, higher limits may apply for thinly traded, speculative or volatile securities, or concentrated positions of securities.

You may purchase only certain securities on margin or use them as collateral in your Margin and Short Account. Most stocks traded on national securities exchanges, and some over-the-counter OTC securities are marginable.

At our discretion, we reserve the right not to extend credit on any security. You must maintain a minimum amount of equity in your account to collateralize your outstanding loans and other obligations. Margin maintenance requirements are set:. You agree to maintain in your Margin and Short Account collateral of the type and amount required by:. This can happen for various reasons. The most common reasons are a decrease in the value of long securities held as collateral or an increase in the value of securities held short.

As a general guideline and when it is practicable to do so, we may but are not required to issue a margin call when the equity in your Margin and Short Account falls below a predetermined percentage of the market value of assets at risk that is, the sum of the market values of the long and short equity security positions in your Margin and Short Account.

The amount of additional collateral we require usually is an amount sufficient to raise your equity to minimum standards. For information on the current equity requirements, please contact your broker. We retain absolute discretion to determine whether, when and in what amounts we will require additional collateral.

In some situations, we may find it necessary to require a higher level of equity in your account. For example, we may require additional collateral if an account contains:. The information and research contained in the eOption Daily Market Report is for analysis, educational and informational purposes only. The inclusion of any specific securities detailed is for research and illustrative purposes only and represent samples of technical analysis and chart pattern recognition.

No information contained in the emails to which you subscribe are intended to constitute a recommendation by eOption to buy, sell, or hold any stock, option, or securities discussed in the email. Recognia is the industry leader providing actionable investment research products for self-directed investors and traders. Our compelling product suite uses automated interpretation of technical, fundamental and value based analytics to help validate investment decisions, manage risk and find ideas.

Recognia helps to automate the investment decision making process by offering dynamic and action-oriented research for all trader types and provides coverage of more than 50 exchanges worldwide, including stocks, equities, forex, indices, currencies and futures. Recognia provides research for educational and informational purposes only and eOption cannot attest to its accuracy or completeness.

No information provided has been endorsed by eOption and does not constitute a recommendation by eOption to buy or sell a particular investment. You are solely responsible for your own investment decisions, and the research and investment strategies contained in the daily report may not be appropriate for you.

Unless expressly stated otherwise, links in this email are not sponsored by nor are they the responsibility of eOption. The Options Industry Council website is created and maintained by a third party who has no affiliation whatsoever with eoption or any of its related entities. Regal Securities has prepared this report pursuant to U.

Securities and Exchange Commission Rule , formerly Rule 11A c , requiring all brokerage firms to make publically available quarterly reports on their order routing practices. The report provides information on the routing of non-directed orders, which are any orders that the customer has not specifically instructed to be routed to a particular venue for execution.

This information can be viewed here. The following discloses our information gathering and dissemination practices for this web site: The information that we have comes directly from you. This includes such information as your name, address and Social Security number that you provided on applications, agreements or other forms.

In addition, we maintain records of each of your transactions and holdings processed by us. We also may obtain information about you, such as your credit history or other facts relating to creditworthiness, from a consumer-reporting agency. We use customer contact information from the registration form to send the user information about our company. We use your IP address to help diagnose problems with our server, and to administer our Web site.

All of the above named parties receive and maintain information about you that is related to and necessary for processing investments in your account. This site has security measures in place to protect the loss, misuse and alteration of the information under our control. If you do not have an up-to-date browser that supports SSL, you should upgrade today. We restrict access to information about you to those employees and authorized agents who need to know that information in order to provide products or services to you.

We maintain physical, electronic and procedural safeguards to maintain the confidentiality of your information. We provide information about current or former clients from the sources described above to parties outside of this firm only as described below:.

To other companies as necessary to process your business. For example, we process your mutual fund and variable product transactions through product providers with whom we have dealer-selling agreements. If you have a trading account, the information that we obtained from you is given to the clearing firm for purposes of facilitating securities trading and statement preparation. These parties must limit their use of the information to the purpose for which it was provided. Where required by law or regulation.

Examples include responses to a subpoena, court order or regulatory demand. As authorized by you, you may direct us, for example, to send account statements or other account information to a third party. As otherwise authorized or permitted by law. For example, the law permits us to respond to a request for information about you from a consumer-reporting agency. This site may supplement the information that you provide when submitting an application for an account with information that is received from third parties.

The eOption Web site contains links to other Web sites. The Privacy Policy applies to consumers who are customers or former customers of eOption. We provide our Privacy Policy to customers when they open a new account and annually thereafter. In the event of a change, a revised Privacy Statement will promptly be posted to our Web site. Any dispute over our Privacy Policy is subject to this notice and our Terms and Conditions, including arbitration of disputes and limitation of damages.

This site gives users the following options for changing and modifying information previously provided. If you have any questions about this privacy statement, the practices of this site, or your dealings with this Web site, you can contact:.

Suite Glenview, IL compliance eOption. Anti-Money Laundering Policy To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. Our firm may not be able to open an account or carry out transactions for you.

Auto Trading eOption does not advise, consult or assist any advisor with respect to the content, recommendations or strategies contained in any advisor or trade alert published by any advisor. Additional Auto Trade Disclosures: You are subject to risk from errors of electronic systems, communications and market timing.

No other party, including your advisor, can start, stop or change your auto trading status. Auto trading will continue in your account indefinitely until your subscription expires, you notify eOption of a change or your account lacks sufficient equity.

The minimum equity must be in the margin type. The sale of an existing position from the previous day and subsequent repurchase is not considered a day trade.

Day trading buying power for equity securities will be 4 times the NYSE excess as of the close of business on the previous day, and the time and tick method of calculating Day Trading is acceptable. Pattern day traders will be prohibited from utilizing cross guarantees to meet Day Trading margin calls or to meet minimum equity requirements. The time and tick method will not be used for day trades executed away from Hilltop Securities, Inc. Day Trading Risk Disclosure Statement You should consider the following points before engaging in a day-trading strategy.

Direct Access Trading Option rates apply to each side of spread orders. Direct Access Trading involves additional fees and risk.

Limited Liquidity, Lack of Depth and Breath Liquidity refers to the ability of market participants to buy and sell securities. Wider Than Normal Spreads The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Fragmentation of the Market There may be multiple, unlinked after hours trading facilities trading the same security but operating independently of one another.

Impact of News Announcements Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Risk of Changing Prices The prices of securities traded in Extended Hours Trading may not reflect the prices either at the end of regular market hours, or upon the opening the next morning.

Fixed Income Clients should take special care in understanding all of the risks involved prior to investing in Fixed Income and Structured Products as they are not suitable for all investors. For questions contact eOption at Non-traditional ETPs are generally categorized as leveraged, inverse, or leveraged-inverse: Leveraged — Uses financial derivatives and debt to multiply the returns of an underlying index, commodity, currency, or basket of assets.

Investors who choose to invest in non-traditional ETPs should be aware of the risks, some of which are outlined below: Non-traditional ETPs are complex products that have the potential for significant loss of principal and are not appropriate for all investors. Investors should consider their financial ability to afford the potential for a significant loss.

Non-traditional ETPs seek investment results for a single day only. The effect of compounding and market volatility could have a significant impact upon the investment returns. Investors may lose a significant amount of principal rapidly in these securities. Non-traditional ETPs may be volatile under certain market conditions. Investors holding non-traditional ETPs over longer periods of time should monitor those positions closely due to the risk of volatility. Non-traditional ETPs are focused on daily investment returns, and their performance over longer periods of time can differ significantly from their stated daily objective.

Investors may incur a significant loss even if the index shows a gain over the long term. Non-traditional ETPs use a variety of derivative products in order to seek their performance objectives.

The use of leverage in ETPs can magnify any price movements, resulting in high volatility and potentially significant loss of principal. Non-traditional ETPs may suffer losses even though the benchmark currency, commodity, or index has increased in value.

Investment returns of non-traditional ETPs may not correlate to price movements in the benchmark currency, commodity, or index the ETP seeks to track. As with any potential investment, an investor should consult with his or her tax advisor and carefully read the prospectus to understand the tax consequences of non-traditional ETPs.

These risks include the following: 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.

You also will be responsible for any shortfall in the account after such a sale. The firm can sell 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. Most firms will attempt to notify their customers of margin calls, but they are not required to do so.

However, even 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 issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account. You are not entitled to an extension of time on 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 of 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. Margin maintenance requirements are set: By the rules and regulations of the New York Stock Exchange, the American Stock Exchange and other regulatory agencies to the jurisdiction of which we are subject; and According to our sole discretion and judgment. You agree to maintain in your Margin and Short Account collateral of the type and amount required by: Applicable exchange rules and federal regulations; and Our Disclosure of Credit Terms and Policies; or As required by us, at our discretion.

Margin maintenance requirements may change without prior notice. For example, we may require additional collateral if an account contains: Only one security or a large concentration of one or more securities; or Low-priced, thinly traded or volatile securities; or if Some of your collateral is or becomes restricted or non-negotiable or non-marginable. If you have sold options, this may increase the risk of loss. Further, normal pricing relationships between the underlying interest and the future, and the underlying interest and the option may not exist.

This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge fair value. Deposited cash and property You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy.

The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

Commission and other charges Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit if any or increase your loss. Transactions in other jurisdictions Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk.

Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should inquire about any rules relevant to your particular transactions.

Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.

Currency risks The profit or loss in transactions in foreign currency denominated contracts whether they are traded in your own or another jurisdiction will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Trading facilities Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Such limits may vary, you should ask the firm with which you deal for details in this respect.

Electronic trading Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems.

If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all. Off-exchange transactions In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions.

The firm with which you deal may be acting as your counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a firm price or to assess the exposure to risk, For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarize yourself with applicable rules and attendant risks.

Electronic trading and order routing systems differ from traditional open outcry pit trading and manual order routing methods. Each of these matters may present different risk factors with respect to trading on or using a particular system. Each system may also present risks related to system access, varying response times, and security.

In the case of Internet-based systems, there may be additional types of risks related to system access, varying response times and security, as well as risks related to service providers and the receipt and monitoring of electronic mail.

In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. System or component failure may also result in loss of orders or order priority. Factors that could adversely impact your ability to use a trading platform include, but are not limited to: In case of blocking of access to a trading platform, AMP customers have access to a 24 hour Trade Desk via Phone, Email and Live Chat for assistance with any live trades.

These limitations of liability provisions vary among the exchanges. You should consult the rules and regulations of the relevant exchange s in order to understand these liability limitations. There are risk associated with electronic trading and system failure includes but not limit to:

DeCarley Trading on Twitter

Appendix A to CFTC Rule (c) - Generic Risk Disclosure Statement and the extent of your exposure to risk. Trading in futures and options is not suitable for many members of the public. You should carefully Risk Disclosure for Futures and Options *TDA* Page 2 of 2 D 1 1 6. Deposited cash and property. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, S. Franklin Street, Suite , Chicago, IL currency options will be based on an exchange rate for the underlying foreign currency from a source selected by the market on which the options trade as set forth in exchange rules. In the case of rate-modified foreign cur-rency options, the options market on which the options are traded would calculate and disseminate the underly-ing rate.