Opening an account to trade Options

Before you can start trading options, your broker will require you to:

  • enter a Client Agreement
  • sign a risk disclosure declaration
  • read the ASX booklet Understanding Options Trading (PDF 1.2MB)
  • open a trading account

Your broker will usually ask you to provide a cash deposit before you can begin to trade.

Under ASX Market Rules your broker is also required to make enquiries about your financial position. The broker must make enquiries to learn your investment objectives, financial situation and particular needs, and maintain a record of this information.

Client Agreement
The Client Agreement sets out the terms and conditions that govern the relationship between you and your broker with respect to options transactions. As part of the agreement you acknowledge that:

  • you have read and understood the risk disclosure statement
  • you have read and understood the explanatory booklet Understanding Options Trading
  • your broker may call on you to provide cash or security as the broker considers appropriate
  • you are bound by the ASX Market Rules

Even if you have been trading shares through your broker for many years you will be required to complete and sign a Client Agreement form before trading in options.

You are also required to sign a new Client Agreement form if you change to another broker for your options transactions.

Understanding Options Trading
Prospective traders in options are required to read the explanatory booklet Understanding Options Trading. The booklet outlines the concepts of exchange traded options, explaining how they work and what they can be used for.

Your broker will supply you with a copy of Understanding Options Trading. Alternatively, you can contact ASX for a free copy of the booklet, or you can download the booklet.

Understanding Options Trading (PDF 1.2MB)

Settlement requirements
Settlement requirements for trading options are strict. You must pay any margin calls by the time stated in your Client Agreement. Under ASX Market Rules, this can be no longer than 24 hours after being called.

Given these requirements, you may choose to open a cash management account with your broker to avoid any undue delays in the settlement process.

ASX Market Rules give your broker wide powers, including the ability to close out contracts or exercise options, if you fail to pay or provide the necessary security.