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Answers to many questions and help tips may be found here. Or you can contact us and we will be happy to answer your questions.

What is OptionDistrict?

OptionDistrict is for anyone who is looking for a simple, flexible and affordable way to invest. It allows individual investors with similar investment objectives to get together and purchase and trade securities, thereby splitting the capital risk and commission costs among them. OptionDistrict has the objective of giving the individual investor the same power of access and opportunity in the market as institutional investors. It offers investors a practical way to invest in virtually every market security available (stock, bonds, commodities, currencies), according to his or her personal budget, without the capital requirement concerns.


How does OptionDistrict work?

As a registered member, click to register, the individual investor will be able to initiate and participate in investment activities listed on the Action Board, according to his or her personal investment objective(s). Every listed investment activity provides investment strategy -- enter and exit point, description of security instrument, investment capital requirements -- both in total and the amount for each participant, and the time horizon. Once the listed investment activity has sufficient participants, OptionDistrict will automatically execute the trade, in accordance to the listed investment strategy. The trading commission costs will be split among participants proportionately. OptionDistrict provides temporary custodian service of the security purchased and handles the administration for all the transactions involved-including disbursement of gains. This guarantees that each participant involved is qualified to invest, and that all changes to each member's account are handled seamlessly.

Here are the user basics, in summary:

i. You can participate by initiating an opportunity or participating in one that is already listed. An opportunity is initiated by submitting an order on the OptionDistrict site (option or stock) and splitting it into units, which can be taken on by other members.

ii. An opportunity may stay on the board for up to 48 hours. If all the units are not taken by the stated time, it will be expire and all funds will be returned.

iii. If all units are taken, OptionDistrict will initiate a buy order (as per the details listed in the opportunity).

Note: If the opportunity is "In Process" before 4pm (EST) on a trading day, a buy order is placed and left open until the end of the next consecutive trading day.
Example: An opportunity goes into "In Process" at 3pm on a Friday, that opportunity will not expire until the end of Monday's trading day.

If the opportunity is "In Process" on a non-trading day or after 4pm (EST) on a trading day, a buy order is placed and left open for the next two full consecutive trading days.
Example: An opportunity goes into "In Process" at 5pm on a Friday (or Saturday); that opportunity will not expire until the end of Tuesday's trading day.
In any of the cases that the buy order is remains unfilled, the opportunity will be expired and all funds returned to the appropriate members.

iv. Once the buy order is filled, participants of any given opportunity may change the initially agreed on price at which they want to sell. This is done by the voting system: any member holding one or more units can suggest a new sell price by initiating a vote--if 60% or higher of the total units agree with the change, the modification will be made. If not, the original sell price will stay in effect. Voting is optional, non-votes count as nays.

Also note the following:

  1. Some options may not meet the Sell At price, but still expire "in-the-money". In some cases, if it expires sufficiently "in-the-money" the broker will automatically purchase the underlying stock or futures; however, as OptionDistrict deals solely with cash only investments ALL OPTIONS IN SUCH CIRCUMSTANCES WILL BE AUTOMATICALLY SOLD AT MARKET, ONCE IT IS WITHIN 24 HOURS OF THE EXPIRATION DATE. All proceeds will then be disbursed in proportion to units held.
  2. OptionDistrict will, on behalf of participants, close out any options that expire with no value.


I know OptionDistrict is an investment community, but can other members see my personal information?

Not at all. OptionDistrict is designed so that each member is remains anonymous and can only be identified by their OD username. All personal information is protected and other members will never be able to know anything about you other than your first name and what you share with them via the message board and chat room. Your first name is shown by default only on your message board profile.


How much does it cost?

OptionDistrict charges just for each unit of an opportunity, which means incomparable reduction of risk capital per opportunity, as the regular trading commission and direct cost of the investment are split among participating members. OptionDistrict facilitates low account or investment minimums for all its members, and no annual fees.
For the complete list of fees, click here.


What kind of security can I buy?

OptionDistrict offers a practical way to invest in virtually every market security available, without the capital requirement concerns. This includes:

  • Derivatives -- Call and Put options on:

         Stocks, ETFs, Indexes, Commodities, Currencies, and fixed income Futures.


How do I get started?

You can start right now. It's easy, follow these three simple steps:

1. Set up a OptionDistrict Account
This is a specialized account established to administer the funds contributed by you. It's your central account, allowing you to conduct investment activities through OptionDistrict. OptionDistrict does NOT have unauthorized access to your funds and is incapable of executing any orders for your account without your consent.

2. Contribute to OptionDistrict Account
You can make a deposit to your OptionDistrict account via electronic checking on the "Fund Accounts" page. There is a $5 fee for all NSF checks.
Please ensure your OptionDistrict account number is on the memo area when filling out both physical and electronic checks to avoid delays in funding youraccount.

3. Let OptionDistrict work for you
Once sufficient funds are deposited into your account, you will automatically be able to execute investment activities through OptionDistrict. To set up an OptionDistrict Account, click here.

Note: If you attempt to fund your OptionDistrict account before submitting the required Customer Release Form and other required documents, your funds will be held in process and will not be deposited into your OD account until the said documents are received.


I don't get any notifications from OptionDistrict, why is that?

If you are using an email account on AOL, Yahoo, Hotmail, MSN, Earthlink, or otherwise use a SPAM filtering email program, our email notifications may not reach you correctly. Be sure to place and in your address book so emails from OD will not get filtered as SPAM.


What should I know about OD usernames?

Your OD username is the unique nickname that you use to identify yourself on OptionDistrict and can be seen by all OptionDistrict users and cannot be changed. Your OD username is displayed when you use OptionDistrict or communicate with other OptionDistrict members; however, other users won't be able to see your personal information (expect your first name on the OD message board which you can disable via the message board control panel). You sign into your OptionDistrict account with your username and password. When you register, choose a username that you like, doesn't hint to your actual name (if you wish) and that you'll remember. No profane words allowed.


What's that number next to my OD username?

That number is your OD rating. Every time you take part in an opportunity that goes into market, your OD rating increases by one. You can use it to determine an OD member's experience with the site.


I forgot my password, what do I do?

Simply click on the "Forgot Password" link on the homepage and enter e-mail address used for your OD account, the system will automatically send you a temporary password.


How can I reach you? can be reached by clicking here, to send us your questions, suggestions, comments, your resume for job opportunities, or required technical support.


Is there a minimum amount required to open an OptionDistrict account?

We have no minimum deposit required to open an account; however, the account must have enough buying power to pay for a trade before it is placed. Please review your investing strategy and fund the account to the appropriate level.


How do I transfer an account into

Any member signing up at must open a new account; holdings from external accounts cannot be transferred.


What kind of investing opportunities does OptionDistrict facilitate?

OD members may only invest in standard options (including futures options), also known as "plain options" or "vanilla options", but only fully-paid-for options on long calls or puts. A "Vanilla Option" is an informal term used to refer a standard Option on any financial instrument. The "vanilla" or "plain vanilla" term is attached in front of a Option to indicate that it is a simple and standard Option with terms like Strike price and Expiry, and has no complex structure. As Options may get very complex with custom features, this term helps distinguish simple option from a complex option. On the contrary, complex option is referred to as "Exotic Option". You can use "Exotic" term to refer to OTC Options. Otherwise there are no clear rules defined to distinguish these two. Due to it's speculative nature, your OD account cannot be used for IRA or any other type or retirement tax-sheltered investing. Day-trading is also not allowed on OptionDistrict.

Regarding Futures: The same commodity or futures contract may trade on different exchanges. When investing in options on futures, please be aware of what type of exchange and trading platform is referred to on this site:

  • CME (Chicago Mercantile Exchange)
  • ICE (Intercontinental Exchange)
  • NYMEX (New York Mercantile Exchange)
  • CBOT (Chicago Board of Trade)
  • NYMEX (New York Mercantile Exchange)
  • CBOT (Chicago Board of Trade)
  • COMEX (Commodity Exchange)
  • [E] implies the electronic platform

The exchange and platforms descriptions above accompany each of the futures options listed on OptionDistrict; refer to it to ensure you are considering the correct market when researching quotes, and placing or participating in an opportunity.


How are accounts protected?

OptionDistrict only deals with institutions that are a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from depreciation in a security's value. Your accounts are protected by the Securities Investor Protection Corporation (SIPC).


If I open an account online, do I still need to send in paperwork?

Yes. After completing the application all customers are required to mail / fax in a signed and completed Customer Release Form to OptionDistrict. Please note that OptionDistrict may request additional information, such as a photo ID, to set up your account.


Can a member individually transfer or sell their portion of holdings in an OD project?

No. All OD projects are launched in accordance of strict terms and conditions that each participant is held to. All changes in the project can only be done in agreement of the group majority (currently 60% or better). OD is binded under contract to only modify projects when the group majority has agreed on the changes. Anything otherwise is a breach of contract.


Why can't I do what I want with my portion of the investment? Don't OD members actually own their shares/options in a project?

Not exactly. OD members own a stake in a investment project launched and administered by OptionDistrict, (enter/exit strategies being agreed upon before the investment is launched); funds held in escrow and transferred before and after each project will be done by OD on behalf of the group. All shares/options are held in an OD owned account in accordance to our terms and conditions.


What services does offer?

OD offers 2 different services: ESCROW AGENT and PROJECT ADMINISTRATOR. As an ESCROW AGENT OD offers a neutral place for OD members to place their money for participation in various projects. As a PROJECT ADMINISTRATOR OD will execute the terms and conditions of investment projects launched by OD members.


Why is the voting process necessary on OptionDistrict?

Since many OD members may own a stake in an investment opportunity, the voting process is necessary to acquire a majority vote so that exit strategies can be modified (if needed) by OptionDistrict. Any member of an opportunity may initiate a vote, with all voting proposals currently lasting a maximum of 2 hours. How much influence of each vote has is determined by the number of units a member holds for that particular opportunity. For example, an opportunity has 5 units split between two members (2 unit for Bill, and 3 units for Sally). Bill's vote will count for 40% while Sally's will count for 60%.

For any opportunity's exit strategy to be modified by OptionDistrict, a passing vote of 60% or better must be achieved. If not, the original sell price will stay in effect. Voting is optional, non-votes count as nays.