Option Disclosure Document

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DEFINITION of 'Option Disclosure Document'

A publication issued by the Options Clearing Corporation (OCC) that first-time option traders are required to read before being allowed to make any option trades. The document prepares traders for the options market.

INVESTOPEDIA EXPLAINS 'Option Disclosure Document'

The document outlines the various types of options and requisite options terminology, provisions for exercising and settling options, tax implications and the unique risks inherent in derivative instruments.

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