Investment Products • Not FDIC Insured • No Bank Guarantee • May Lose ValueCheck the background of Morgan Stanley Smith Barney LLC on FINRA's BrokerCheckand see
the Morgan Stanley Smith Barney LLC RelationshipSummary.PLEASE READ THE IMPORTANT DISCLOSURES BELOW.
Banking products and services are provided by Morgan Stanley Private Bank, National Association, Member FDIC.
Important Note: Options and futures transactions are intended for sophisticated investors and are complex, carry a high degree of risk, and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure Statement for Futures and Options prior to applying for an account. You can also view the E*TRADE Futures LLC Financial Information and Disclosure Documents. Also, there are specific risks associated with uncovered call writing, including the risk that the underlying stock could be sold at the exercise price when the current market value is greater than the exercise price the call writer will receive. Please read the Special Statement for Uncovered Options Writers before you trade. Moreover, there are specific risks associated with buying options, including the risk of the purchased options expiring worthless. Because of the importance of tax considerations to all options transactions, the investor considering options should consult his/her tax adviser as to how taxes may affect the outcome of different options strategies and each options transaction. Commissions and other costs may be a significant factor. An options investor may lose the entire amount of an investment in a relatively short time. Supporting documentation for any claims, comparison, statistics, or other technical data will be supplied upon request.
This material is a product of Morgan Stanley Smith Barney LLC ("Morgan Stanley") and is not a research report or a product of a research department. Any opinions or recommendations expressed in this material may differ from those expressed by other Morgan Stanley personnel or affiliated entities.
E*TRADE from Morgan Stanley (“E*TRADE”) charges $0 commission for online US-listed stock, ETF, mutual fund, and options trades. Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. The standard options contract fee is $0.65 per contract (or $0.50 per contract for customers who execute at least 30 stock, ETF, and options trades per quarter). The retail online $0 commission does not apply to Over-the-Counter (OTC) securities transactions, foreign stock transactions, large block transactions requiring special handling, futures, or fixed income investments. Service charges apply for trades placed through a broker ($25). Stock plan account transactions are subject to a separate commission schedule. All fees and expenses as described in a fund's prospectus apply. Additional regulatory and exchange fees may apply. For more information about pricing, visit etrade.com/pricing
Educational materials provided by Morgan Stanley are for informational purposes only. Any opinions or recommendations expressed in this material do not take into account individual investors' circ*mstances and are not intended to represent "recommendations" by Morgan Stanley of particular securities to particular customers. This information neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy or sell securities by Morgan Stanley or its affiliates. No information presented is intended to constitute a recommendation by Morgan Stanley or its affiliates to buy, sell or hold any security, financial product, account type or instrument discussed therein or to engage in any specific investment strategy. The views expressed may be subject to change at any time. You are fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circ*mstances, investment objectives, risk tolerance and liquidity needs.
Investing in securities involves risk, including possible loss of principal. Past performance is not an indication of future results.
Futures margin, also known as a “performance bond,” is the amount of money you are required to deposit in your account to open and hold a futures position. Unlike margin trading in the equity market, futures margin is not a loan. The amount of initial margin (i.e., required upfront capital) is small relative to the notional value of the futures contract. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit, which may work against you as well as for you. You may sustain a total loss of your initial investment, any additional funds deposited to maintain your position, or potentially amounts exceeding your initial investment or the prior days’ minimum regulatory requirements, and which may require you to deposit additional funds into your account to satisfy any resulting debits. If the funds in your account drop below the minimum regulatory requirement at any given time, you may be called upon to pay substantial additional funds on short notice to maintain your position or your position may be automatically liquidated at a loss and you will be liable for any resulting deficit. As a general matter, E*TRADE Futures LLC does not permit physical delivery of commodities or digital assets. Customers that hold futures to maturity may be subject to immediate liquidation including at a loss and appliable fees.
The use of derivatives (futures, options and swap agreements) may create additional risks that would not be present in the underlying securities themselves, thus raising the potential for greater investment loss. Examples include a reduction in returns, increased volatility, exposure to the effects of leverage, and the risk that the other party in the transaction will not fulfill its contractual obligations.
Securities products and investment advisory services offered by Morgan Stanley Smith Barney LLC, Member SIPC and a Registered Investment Adviser. Commodity futures and options on futures products and services offered by E*TRADE Futures LLC, Member NFA Stock plan administration solutions and services offered by E*TRADE Financial Corporate Services, Inc., and are a part of Morgan Stanley at Work. Banking products and services provided by Morgan Stanley Private Bank, National Association, Member FDIC. All entities are separate but affiliated subsidiaries of Morgan Stanley. E*TRADE from Morgan Stanley and Morgan Stanley at Work are registered trademarks of Morgan Stanley. System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors. Statement of Financial Condition | About Asset Protection | Account Agreements and Disclosures | Quarterly 606 Report | Business Resiliency Plan ©currentYear E*TRADE from Morgan Stanley. All rights reserved. E*TRADE Copyright Policy
As an enthusiast with a demonstrated depth of knowledge in the financial industry, I can confidently analyze and interpret complex financial statements, regulatory disclosures, and industry-related documents. My experience in the field allows me to provide insights that go beyond the surface, ensuring a comprehensive understanding of the information at hand.
Now, let's delve into the concepts mentioned in the provided article:
-
Morgan Stanley Smith Barney LLC Background:
- Morgan Stanley Smith Barney LLC is a financial services firm, and it's advisable for potential investors or clients to check its background on FINRA's BrokerCheck for regulatory information.
-
Investment Products Disclaimer:
- The disclaimer mentions that investment products are not FDIC insured, have no bank guarantee, and may lose value. This underscores the inherent risks associated with investing.
-
Banking Products and Services:
- Banking products and services are provided by Morgan Stanley Private Bank, National Association, and are FDIC insured. This adds a layer of security to the banking aspect of their offerings.
-
Options and Futures Transactions Warning:
- Options and futures transactions are complex and carry a high degree of risk. They are intended for sophisticated investors, and it's crucial to read the Characteristics and Risks of Standardized Options and the Risk Disclosure Statement for Futures and Options before applying for an account.
-
*ETRADE from Morgan Stanley:**
- E*TRADE, part of Morgan Stanley, offers $0 commission for online US-listed stock, ETF, mutual fund, and options trades. However, there are exclusions and potential variable commission rates.
-
Educational Materials and Investment Recommendations:
- Educational materials provided by Morgan Stanley are for informational purposes only. The article emphasizes that opinions or recommendations expressed in the material do not take into account individual investors' circ*mstances.
-
Risk Disclosure in Futures Trading:
- Futures trading involves a performance bond (margin), and a small market movement can have a proportionately larger impact. It warns of the possibility of sustaining a total loss of initial investment and the need for additional funds in case of account drops below the minimum regulatory requirement.
-
Use of Derivatives Warning:
- The use of derivatives (futures, options, and swap agreements) may create additional risks, such as reduced returns, increased volatility, exposure to leverage effects, and the risk of the other party not fulfilling contractual obligations.
-
Entities and Affiliations:
- Various entities, including Morgan Stanley Smith Barney LLC, ETRADE from Morgan Stanley, ETRADE Futures LLC, and others, are mentioned as separate but affiliated subsidiaries of Morgan Stanley.
-
System Response and Account Access:
- System response and account access times may vary due to factors such as trading volumes, market conditions, and system performance.
In conclusion, the article provides a wealth of information about Morgan Stanley Smith Barney LLC, emphasizing the risks associated with investment products, options, and futures transactions. It also sheds light on the structure and affiliations of different entities within the Morgan Stanley framework. Investors are urged to thoroughly educate themselves and consider individual circ*mstances before making investment decisions.
