What is brokerage operations?
Review • Highlights of previous session Margin • Purpose Cash Accounts • Pay in full • Must deliver • Paperwork: requires New Account and Customer Agreement form(s) Margin Account • Arranging financing to leverage purchases • Must pay required amount by settlement date • Paperwork: requires New Account, Customer Agreement, Margin and Lending Agreement form(s) Margin Account – Equities • Federal rules • SRO rules • Brokerage firm rules • Excess • Maintenance • SMA • T Call • Maintenance Call • Short Sale • Buying power Option Margin • Paperwork: Option Agreement, Standard Forms and approval requirements • Long position • Written position • Applications for Spreads, Straddles and Combination
