Exercise
Please answer true or false.
- 1. _____ A commodity customer agreement obligates the customer to maintain required margins in its account at all times.
- 2. _____ In a commodity customer agreement, a firm has the right to liquidate any customer positions or cancel any open orders if the customer fails to keep sufficient capital in its account.
- 3. _____ Customers must receive disclosure documents, but they do not have to attest to reading them.
- 4. _____ Firms must decide whether to liquidate, exercise, or allow contracts to expire within some designated time, and inform customers of this decision.
- 5. _____ Customers must affirm that financial information is true on their commodity customer agreement.
- 6. _____ Discretionary authority may be given verbally, as long as the written authority is given within 10 business days of the first transaction.
- 7. _____ Discretionary authority is required when making a decision regarding the time that an order is placed.
- 8. _____ Discretionary trades must be approved