#Merill edge ira plus

You can lose more funds than you deposit in the margin account.

It is important that you fully understand the risks involved in using margin.

For all other accounts, the terms are in your account agreement and disclosures. For Individual Investor Accounts, these terms are contained in the Margin Lending Program Client Agreement. Please refer to your account documents for more information.īefore opening a margin account, you should carefully review the terms governing margin loans.

#Merill edge ira plus

If your account has a Visa ® card and/or checks, you may also create a margin debit if your withdrawals (by Visa card, checks, preauthorized debits, FTS or other transfers) exceed the sum of any available free credit balances plus available money account balances (such as bank deposit balances or money market funds). If the securities in your margin account decline in value, so does the value of the collateral supporting your loan, and, as a result, we can take action, such as to issue a margin call and/or sell securities in any of your accounts held with us, in order to maintain the required equity in your account. If you choose to borrow funds for your purchase, Merrill's collateral for the loan will be the securities purchased, other assets in your margin account, and your assets in any other accounts at Merrill. When you purchase securities, you may pay for the securities in full, or if your account has been established as a margin account with the margin lending program, you may borrow part of the purchase price from Merrill. Trades commissions for trades placed with a representative will not exceed 75% of trade amount. Supporting documentation for any claims, comparison, recommendations, statistics, or other technical data, will be supplied upon request.įootnote 3 Exercise and assignment of cash settled options are subject to a $0.65 per-contract fee. View specific Merrill Option Exercise & Assignment Practices (PDF). Options can be assigned/exercised after market close on expiration day. Note that American-style options can be assigned/exercised at any time through the day of expiration without prior notice. Long options are exercised and short options are assigned. Early assignment risk may be amplified in the event a call writer is short an option during the period the underlying security has an ex-dividend date. To learn more about Merrill's uncovered option handling practices, view Naked Option Stress Analysis (NOSA) (PDF).Įarly assignment risk is always present for option writers (specific to American-style options only).

This is applicable to all options strategies inclusive of long options, short options and spreads. Trading, rolling, assignment, or exercise of any portion of the strategy will result in a new maximum loss, gain and breakeven calculation, which will be materially different from the calculation when the strategy remains intact with all of the contemplated legs or positions. The maximum loss, gain and breakeven of any options strategy only remains as defined so long as the strategy contains all original positions. Multi-leg option orders are charged one base commission per order, plus a per-contract charge.

You may also call the Investment Center at 877.653.4732 for a copy. Please read the options disclosure document titled ' Characteristics and Risks of Standardized Options (PDF)' before considering any option transaction. Before engaging in the purchase or sale of options, investors should understand the nature of and extent of their rights and obligations and be aware of the risks involved in investing with options. Certain requirements must be met to trade options. Options involve risk and are not suitable for all investors.