Registered Options Principal - ROP

AAA

DEFINITION of 'Registered Options Principal - ROP'

An employee at a brokerage firm that is responsible for supervising options' exposure and the trading activities on options within client accounts. The ROP acts between the client making the order and the exchange member who executes the order.

INVESTOPEDIA EXPLAINS 'Registered Options Principal - ROP'

In a brokerage firm there is often more than one ROP. In some cases, one is the designated ROP, while another is the alternate ROP. The alternate ROP acts as a subordinate to the designated ROP. Both positions are often taken by senior employees, more specifically either a partner, officer, or director of the firm.

In the United States, an individual wishing to become a ROP must take and pass the Series 4 securities license course provided by the National Association of Securities Dealers. In Canada, a potential ROP must pass the The Options Supervisors Course provided by the Canadian Securities Institute.

RELATED TERMS
  1. Senior Registered Options Principal ...

    An officer or general partner of an options trading firm who ...
  2. Registered Principal

    A licensed securities dealer who is also empowered to oversee ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Option

    A financial derivative that represents a contract sold by one ...
  5. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  6. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
Related Articles
  1. Options & Futures

    Options Basics Tutorial

    Discover the world of options, from primary concepts to how options work and why you might use them.
  2. Bonds & Fixed Income

    Wrap Accounts: A Gift Of Advice?

    Fee-based accounts were banned in 2007, but a on a practical level, this service remains the same for investors.
  3. Options & Futures

    Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  4. Options & Futures

    What is the difference between arbitrage and hedging?

    Dive into two very important financial concepts: arbitrage and hedging. See how each of these strategies can play a role for savvy investors.
  5. Options & Futures

    A Detailed Look Into China's Options Market

    As the Chinese options market gradually takes shape, we provide an overview, including details of the initial phase and building blocks, primary beneficiaries, the impact on the overall financial ...
  6. Options & Futures

    How do you trade put options on E*TRADE?

    Learn all about put option trading at E*TRADE. Explore margin accounts and become familiar with the different types of option writing.
  7. Trading Systems & Software

    How do you trade put options on Ameritrade?

    Learn about option trading with TD Ameritrade. Explore the different types of options and their possible impacts on the investors that write them.
  8. Options & Futures

    Avoid These 10 Mistakes When Trading in Cheap Options

    Cheap options can be very risky. Reduce your risk by avoiding these 10 common mistakes in trading in cheap options.
  9. Options & Futures

    What is the difference between a short position and a short sale?

    Learn how short selling and short positioning are different, specifically in regards to the nature of the commodity being bought and sold.
  10. Options & Futures

    Are there any risks involved in trading put options through a traditional broker?

    Explore put option trading and different put option strategies. Learn the difference between traditional, online and direct option brokers.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center