Common use of Warning to Option Writers Clause in Contracts

Warning to Option Writers. As a writer of an option, you may be required to pay additional margin at any time. You acknowledge that as an option writer, unlike an option holder, you may be liable for unlimited losses based on the rise or fall of the price of the underlying securities and your gains are limited to the option premium. Additionally, writers of American-style call (put) options may be required at any time before expiry to deliver (pay for) the underlying securities to the full value of the strike price multiplied by the number of underlying securities. You recognize that this obligation may be wholly disproportionate to the value of premium received at the time the options were written and may be required at short notice. SCHEDULE C – ADDITIONAL TERMS FOR ELECTRONIC TRADING SERVICES 1 APPLICATION OF THE ADDITIONAL TERMS

Appears in 3 contracts

Samples: Client Agreement, Client Agreement, Client Agreement

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Warning to Option Writers. As a writer of an option, you may be required to pay additional margin at any time. You acknowledge that as an option writer, unlike an option holder, you may be liable for unlimited losses based on the rise or fall of the price of the underlying securities and your gains are limited to the option premium. Additionally, writers of American-style call (put) options may be required at any time before expiry to deliver (pay for) the underlying securities to the full value of the strike price multiplied by the number of underlying securities. You recognize that this obligation may be wholly disproportionate to the value of premium received at the time the options were written and may be required at short notice. SCHEDULE C – ADDITIONAL TERMS FOR ELECTRONIC TRADING SERVICES 1 APPLICATION OF THE ADDITIONAL TERMS.

Appears in 2 contracts

Samples: Client Master Agreement, S Agreement

Warning to Option Writers. As a writer of an option, option you may be required to pay additional margin at any time. You acknowledge that as an option writer, unlike an option holder, you it may be liable for unlimited losses based on the rise or fall of the price of the underlying securities security and your its gains are limited to the option premium. Additionally, writers of American-style call (putPut) options may be required at any time before expiry to deliver (pay for) the underlying securities to the full value of the strike price multiplied by the number of underlying securities. You recognize that this obligation may be wholly disproportionate to the value of premium received at the time the options were written and may be required at short notice. SCHEDULE C – ADDITIONAL TERMS FOR ELECTRONIC TRADING SERVICES 1 APPLICATION OF THE ADDITIONAL TERMS.

Appears in 1 contract

Samples: Futures Client Agreement

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Warning to Option Writers. As a writer of an option, you may be required to pay additional margin at any time. You acknowledge that as an option writer, unlike an option holder, you may be liable for unlimited losses based on the rise or fall of the price of the underlying securities and your gains are limited to the option premium. Additionally, writers of American-style call (put) options may be required at any time before expiry to deliver (pay for) the underlying securities to the full value of the strike price multiplied by the number of underlying securities. You recognize that this obligation may be wholly disproportionate to the value of premium received at the time the options were written and may be required at short notice. SCHEDULE Schedule C – ADDITIONAL TERMS FOR ELECTRONIC TRADING SERVICES Additional Terms for Electronic Trading Services 1 APPLICATION OF THE ADDITIONAL TERMSApplication of the Additional Terms

Appears in 1 contract

Samples: S Agreement

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