Options Trading: Opening an Options Account

By Patricia Uceda, Spring 2015 Graduate Research Assistant

In today’s post we will be discussing the SEC’s Investor Bulletin: Opening an Options Account to describe steps you need to take to open an options trading account with your broker-dealer.

Before you can start trading options through a broker, you will be asked to provide your broker with some information.  The questions will help your broker determine the suitability of options trading for you and, if so, the types of options trading you can engage in through your account.

What will your broker need to consider?  According to the SEC, you’ll be asked to give your broker information about your investment objectives, describe your experience in trading, discuss your personal financial situation and describe what kinds of options you are considering trading.