Terms and Conditions
In consideration of Southesk Gottman, accepting your orders to trade option contracts for your Account (Account), you agree that the following terms and conditions apply to your Account, in addition to the other terms and conditions currently set forth on www.southesk-gottman.com.
Risks of Option Trading
The purchase or writing of options contracts involves a certain degree of risk and is not suitable for all investors.
By applying to open an Options Trading Account, you denote that you:
- Understand the risks inherent in options trading;
- Are financially able to withstand option-trading losses, including maximum the loss of your entire investment;
- Have determined that options trading is suitable for you, considering your financial situation and investment objectives, and
- Are willing and able to assume the financial risks and hazards of options trading and agree that you will in no way hold Southesk Gottman or any of its affiliates, responsible for any associated losses.
Neither Southesk Gottman nor its officers, employees or agents are authorized to give tax advice. You should consult a professional tax advisor regarding the tax effect of options transactions in Your Account.
Importance of Accuracy in Your Application
You denote that the information you have provided on the application to open an Account is accurate. You agree to notify Southesk Gottman if there are important changes in the investment objectives or financial situation you have described in your application.
Rules and Regulations
You state that you understand that any option transaction made for your Account is subject to the rules, regulations, customs, and usages of the registered derivatives exchange, applicable self-regulatory organization, or market where such transaction was executed. You agree to abide by such rules, regulations, customs, and usages and agree that, in acting individually or in concert with others, you will not exceed any applicable position or exercise limits imposed by such exchange, association, or another market with respect to options trading.
Provision of Services
When we approve your Account for options trading, we will act as your advisor to purchase, sell, assign, transfer, exercise, endorse, clear, or otherwise handle puts, calls, and other contracts relating to derivatives, derivatives-related indices, and other options trading or certain types of options transactions or specific option transactions in your Account.
Payment
We may decline to accept your order to purchase options contracts if there are not sufficient funds available (that is, funds on which no holds or other restrictions are imposed) in your Account to pay the purchase price, if you do not have sufficient equity in your Account to meet applicable margin requirements, or for other reasons subject to our discretion. Option transactions must be settled on the settled business day after the day your order is executed, and it is your responsibility to deposit the necessary funds and maintain sufficient equity in the Account.
Assignments
If sufficient assets or equities are not in your Account to cover the assignment of an option, at our discretion, may (but are not required to) take action. We may place an order to close the short option position on the business day prior to expiration. If an option is assigned, we may close out the position(s) that result from the assignment. You agree to waive, and to release us and our officers, employees, and agents from any and all claims of damage or loss, then or at a later time sustained, as a result of the exercise or non-exercise of an option contract(s).
We allocate exercise assignment notices among customer short positions according to an automated procedure. This procedure randomly selects from among all customer short option positions (including positions established on the date of assignment) those contracts that are subject to exercise. You acknowledge that the assignment process may result in multiple partial assignments and/or multiple transactions to fulfill a single assignment, and a separate commission charge will apply to each partial assignment or transaction needed to complete an assignment.
Position and Exercise Limits–Rules
You agree that you will not, either acting individually or together with others, directly or indirectly:
- Hold or control any number of options contracts that exceed the position limitations, or
- Exercise a long position in any options contract that exceeds the exercise limitations, all as set from time to time by the exchanges or markets where such option contracts are traded.
All options trading activity in your Account will be conducted according to the constitutions, rules, regulations, and usages of the applicable exchange and/or regulatory agency. In addition, we may, at our discretion and without prior notice impose more restrictive house option position limitations.
Severability
In case any court or regulatory agency declares any provision or condition of the Account Trading Agreement as invalid or unenforceable, such invalidity or unenforceability shall only apply to that specific provision or condition. The remaining provisions and conditions shall still be valid and enforceable and the Account Trading Agreement shall remain in effect as if the invalid or unenforceable provision or condition was never included.