Document background
The Options Account Agreement is a fundamental document required by Canadian securities regulations before any client can begin trading options through a registered investment dealer. This agreement is mandated by regulatory bodies including IIROC and provincial securities commissions, and must be executed prior to any options trading activity. The document outlines the sophisticated nature of options trading, establishes risk parameters, defines margin requirements, and sets forth both client and dealer obligations. It's designed to protect both parties while ensuring compliance with Canadian securities laws and regulations. The agreement typically includes comprehensive risk disclosures, trading permissions based on client sophistication levels, and specific provisions for different types of options strategies permitted in the account.
