What is an options trading account


This bulletin provides a general overview of the steps an investor must take to open an best binary broker in binary option broker trading account with his or her broker-dealer. For additional information on options and what is an options trading account options marketplace, investors should consider reviewing the following: For more specific details on how to open an options trading account, investors should contact their broker-dealer. Investor Alerts and Bulletins.

The information you provide in your options agreement allows your brokerage firm to determine which option trading levels, if any, you qualify for in your account. These trading levels determine the types of option trades you can execute in your account. Information You Will Need to Provide The information you will need to provide in what is an options trading account options agreement generally includes, among other things:

Based on the information you provide, your broker will determine whether options trading is what is an options trading account for you and, if so, what types of options trading may occur in your account. Level 1 generally represents the lowest level of risk, while level 5 generally represents the highest level of risk. Before you can trade options, your broker must approve your brokerage account for options trading.

Trading Levels The information you provide in your options agreement allows your brokerage firm to determine which option trading levels, if any, what is an options trading account qualify for in your account. Make sure you read this publication and carefully consider the information in it before you begin trading options. Before you can trade options, your broker must approve your brokerage account for options trading.

The types of option trading that occurs at each level and even the number of levels may vary among brokerage firms. For more specific details on how to open an options trading account, investors should contact their broker-dealer. Broker-dealers generally offer 5 levels of option trading representing varying degrees of risk.