Templeton Financial Group A Member of the National Futures Association and registered with the Commodity Futures Trading Commission
FOR OUR MUTUAL PROTECTION It is Templeton Financial Groups’ policy that all orders for the purchase or sale of any commodity futures contract or commodity options contract be placed by you, directly with Templeton Financial Groups’ Compliance or Trading Department. Your account executive is required to service your needs and in that pursuit will often make recommendations to you. Your account executive is not permitted to directly accept or place orders on your behalf. We are providing a method by which you control all trading decisions for your own account. We require that at the time you place the first order for your account, a representative of our Compliance Department ask you a series of questions and obtain answers from you to assure us that you are aware of the nature of the transaction in which you are about to engage, the risk involved, the commissions charged, the breakeven point and other matters relating to your account. This conversation will be tape recorded and by signing this form you will be consenting to the taping of that conversation and all subsequent conversations in connection with your orders. Unless Templeton Financial Group is immediately advised to the contrary, we will assume that your answers to any of the questions posed by the Compliance Department or your account executive have not been prompted and are being given by you as frankly and honestly as possible. If your account executive suggests to you not to answer the questions truthfully, we urge you to contact our Compliance Department immediately. Such representations are unauthorized and will be dealt with accordingly by management. In determining whether to commit funds to purchase commodity options, you must consider the following in addition to the other risk disclosure statements and other account opening documents that you have received and reviewed: 1.) A seasonal increase in demand for a specific commodity such as heating oil and unleaded gasoline, in and of itself, will not necessarily result in an increased value of an option on the given commodity. 2.) Past trend in futures prices of specific commodities do not necessarily forecast current profitability of options on futures contracts of those commodities. FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH & FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKET STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED.
3.) Currently known market conditions news does not necessarily mean that you will make money trading through Templeton Financial Group, as currently known market news is usually already factored into the underlying futures prices, as well as the option value. 4.) Except possibly for the in-the-money options, a rise in the price of the underlying futures contract does not typically correlate on a one-to-one ratio with a rise in the price of an option on the futures contract. 5.) Stop loss orders are not always effective in limiting the risk of loss. 6.) Diversification of options positions does not necessarily limit the risk of loss or increase profit potential for each option purchased. 7.) Under certain market conditions, you may find it difficult or impossible to liquidate a position since market conditions on the Exchange where the order is placed may make it impossible to execute the liquidation of a purchase. No account executive or other representative of Templeton Financial Group is authorized to make any statement or representation at variance with, or which tends to minimize or negate, any or all of the above statements. Similarly, no account executive or other representative of Templeton Financial Group can guarantee or assure that you that your account will be profitable. If any account executive or other representative does so, do not rely upon such statements or representations and advise the Compliance Department immediately. Lastly, in the course of conversations with you as a customer or potential customer your account executive will provide you with mathematical examples of how a proposed option position will increase in value if the market moves in a projected fashion. Although account executives are encouraged to fully explain the mechanics of leverage involved with purchasing options, no such representation is guaranteed and you should not infer that any past or current client of Templeton Financial Group has obtained similar results as may be provided in any profit examples used. I hereby acknowledge that I have read and understand all information set forth above, and that I consent to the taping procedure described herein.
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5300 West Atlantic Ave., Ste. 505, Delray Beach, FL 33484 FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH & FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKET STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED.
Templeton Financial Group A Member of the National Futures Association and registered with the Commodity Futures Trading Commission
ADDITIONAL RISK DISCLOSURE IF YOUR FINANCIAL APPLICATION REFLECTS AN INCOME OR NET WORTH OF LESS THAN $50,000 YOU SHOULD READ THIS DOCUMENT CAREFULLY SINCE IT MIGHT BE INTERPRETED THAT: In determining whether to commit funds to purchase commodity options, you must consider the following in addition to the other risk disclosure statements and other account opening documents that you have received and reviewed: 1.) The amount of funds you have committed to your Futures/Options account might be overly substantial in relation to your annual income/net worth. 2.) Based on your personal information and investment experience, Futures/Options trading might be too risky for an investment strategy. Futures and Options trading are considered a risky form of investing. If you have pursued conservative forms of investing in the past, you may wish to study futures and options trading further before considering an investment. You must realize that you could sustain a total loss of all funds you invest with your broker as initial margin as well as substantial amount of additional risk capital. If you do not, your position could be liquidated resulting in a loss you will be responsible for. We ask that you acknowledge, by your signature below, that the funds you have committed are purely risk capital, and such an investment will not jeopardize your style of living nor will it detract from your future retirement program. You further acknowledge that you fully understand the nature of such an investment, the risk involved, and that your obligation to others will not be neglected by possible loss of funds invested. I acknowledge receiving a copy of the Templeton Financial Group’s Additional Risk Disclosure statement and that I have read and fully understood it. Name_________________________
Name___________________________
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5300 West Atlantic Ave., Ste. 505, Delray Beach, FL 33484 FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH & FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKET STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED.
TEMPLETON FINANCIAL GROUP 5300 West Atlantic Avenue, Suite 505 Delray Beach, FL 33484 PHONE: 561-499-9889 FAX: 561-499-4018 A Member of the National Futures Association and registered with the Commodities Futures Trading Commission
Account Name: ________________________________________________________ Introducing Broker: TEMPLETON FINANCIAL GROUP COMMISSION AND FEE RIDER
Futures & Options on Futures Contract Round Turn (All Inclusive) Includes: Commissions, Clearing fees, Exchange and Floor Brokerage fees which vary depending upon the commodity purchased. National Futures Association Fee (Per Round Turn)
$
87.50
$
.02
$
87.50
$
87.50
$
.02
Spreads Buy an Option to Open Round Turn (All Inclusive) Sell an Option to Open Round Turn (All Inclusive) Includes : Commissions, Clearing fees, Exchange and Floor Brokerage fees which vary depending upon commodity purchased. National Futures Association Fee (Per Round Turn)
All Transaction and Brokerage Fees Are Charged By FCM Option positions exercised into futures will incur all regular and applicable charges as stated above. I acknowledge receipt of the notification of charges, which are applicable to my account with Templeton Financial Group. ________________________________ Client Signature
_____________________________ Client Signature
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FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH & FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKET STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED.