General Risks. Aside from the risks upon exercise described in Paragraph 6, options transactions may carry a high degree of risk. Both buyers and sellers of options should be sure that they understand the nature of the option contract (“put” or “call”) that they propose to trade and the associated risk/return profiles in different market scenarios. When buying an option you should calculate the extent to which the value of an option contract must increase for your position to be profitable, taking into account the price of the option (the “premium”) and all transaction costs. There is no daily mark-to-market on Option position. Buyer of an option has the liability limited to the premium plus transaction costs related to option. Seller of an option has limited profit in the form of premium received but has unlimited liability.
Appears in 2 contracts
Samples: Member Client Agreement, Client Registration Agreement
General Risks. Aside from the risks upon exercise described in Paragraph 6, options transactions may carry a high degree of risk. Both buyers and sellers of options should be sure that they understand the nature of the option contract (“put” or “call”) that they propose to trade and the associated risk/return profiles in different market scenarios. When buying an option you should calculate the extent to which the value of an option contract must increase for your position to be profitable, taking into account the price of the option (the “premium”) and all transaction costs. There is no daily markxxxx-to-market on Option position. Buyer of an option has the liability limited to the premium plus transaction costs related to option. Seller of an option has limited profit in the form of premium received but has unlimited liability.
Appears in 2 contracts
General Risks. Aside from the risks upon exercise described in Paragraph 6, options transactions may carry a high degree of risk. Both buyers and sellers of options should be sure that they understand the nature of the option contract (“put” or “call”) that they propose to trade and the associated risk/return profiles in different market scenarios. When buying an option you should calculate the extent to which the value of an option contract must increase for your position to be profitable, taking into account the price of the option (the “premium”) and all transaction costs. There is no daily mark-xxxx- to-market on Option position. Buyer of an option has the liability limited to the premium plus transaction costs related to option. Seller of an option has limited profit in the form of premium received but has unlimited liability.
Appears in 1 contract
Samples: Member Client Agreement
General Risks. Aside from the risks upon exercise described in Paragraph 64.1, options transactions may carry a high degree of risk. Both buyers and sellers of options should be sure that they understand the nature of the option contract (“put” or “call”) that they propose to trade and the associated risk/return profiles in different market scenarios. When buying an option you should calculate the extent to which the value of an option contract must increase for your position to be profitable, taking into account the price of the option (the “premium”) and all transaction costs. There is no daily markxxxx-to-market on Option position. Buyer of an option has the liability limited to the premium plus transaction costs related to option. Seller of an option has limited profit in the form of premium received but has unlimited liability.
Appears in 1 contract
Samples: Client Agreement