Basket Trading User Agreement

Important Information

Use of Fidelity's Basket Trading product is subject to the terms, conditions and policies set forth by Fidelity and subject to change without notice. By using the Basket Trading product, you acknowledge your understanding and acceptance of the terms and risks set forth herein. Should you not agree with these terms, you will not be able to use the Basket Trading product. Your use of the Basket Trading product is also subject to your other agreements with Fidelity.

Risks:

Basket Trading is subject to the terms and conditions of the Electronic Services Customer Agreement that you accepted when registering your account online with Fidelity, as well as your other account agreements. Orders entered using the online Basket Trading product are subject to trade edits, policies and procedures as may be established for trading online at Fidelity from time to time. In addition, there are certain risks that you should be aware of prior to using the Basket Trading product:

1. Basket Diversification and Investment Strategy. The Basket Trading product is not intended to ensure adequate diversification of your investment portfolio. You must perform your own evaluation of whether basket trading and the types and amounts of securities within a basket are consistent with your investment objective, risk tolerance and financial circumstances.
2. Market Orders. Basket Trading requires customers to enter Market Orders both in the creation of a basket and when liquidating a basket or individual positions within a basket. In volatile market conditions or when trading certain active stocks or illiquid stocks, the price received when your basket order is executed may vary from the market price indicated when your basket order was created or entered. This risk may increase depending on the time it may take in creating a basket or basket order. Use caution when placing market orders because the price of securities may change sharply during the trading day or after hours. If you have limited assets to pay for a transaction, such as in a retirement account with contribution restrictions, you may wish to allow yourself greater room for price fluctuations when placing an order. Limit orders are not an option when placing orders through the Basket Trading application. If you cannot pay for a transaction, Fidelity may be required to liquidate account assets at your risk. During periods of heavy trading or volatility, real time quotes may not reflect current market prices or quotes. Please review the order information and quote provided in the "Trade Baskets Verification Screen" before sending your order to the marketplace. Fidelity pre-fills certain fields to help expedite order entry. Please verify all order information shown. If the account is approved for margin trading, the Trade Type will default to margin. Please be sure to verify your selection before you place your order.
3. Timing. The Basket Trading application is available during the same hours as the standard trading applications. Orders are eligible for execution only during standard market hours in effect from time to time. You can create and save baskets during non-market hours. Basket Trading is not eligible in Fidelity's Pre-Market and After Hours ECN sessions. Use caution when entering orders near market close. While Fidelity will attempt to provide you with a warning message to indicate that your order is being entered within 5 minutes of the close, this message will only appear on the trade verification screen. If you attempt to transmit several orders for a basket near market close, there is a possibility that some or all orders in the basket may not receive an execution in that market session.
4. Communication Delays. Delays or failure in communications due to a high volume of orders or communications, or other computer system problems, may cause delays in, or prevent access to current information or execution of your orders. Fidelity is not responsible for such delays or service interruptions. Basket Trading is offered as a web based product. While Fidelity Representatives are available to assist you with the purchase of individual securities outside of Basket Trading, they will not be able to assist you in purchasing a basket. In the event of Fidelity system problems, or system problems with your connection or computer, representatives will assist you in the individual liquidation of securities held as positions within a basket.
5. Selling Securities. Fidelity has provided the opportunity to liquidate securities held within baskets from two trade areas, Trade Stocks and Basket Trading. Because we display your total shares held in a stock on the Positions page with an indicator that some shares may be part of a basket, shares can be liquidated from the Trade Stocks screen and the Basket Trading application. If you own some or all shares of a security within a basket or multiple baskets, and are selling shares from the Trade Stocks screen, you will receive a message indicating that you may be breaking a basket position. If you sell outside the Basket Trading application, and are not liquidating your entire position, shares will first be sold from any shares not held in a basket. Additional shares needed to complete the sell order will be sold based on logic that has the least impact to the fewest number of baskets. If you are liquidating a position within the Basket Trading application, you will only be able to sell the shares within that specific basket. Section 7 of this agreement refers to your selection of tax lots when you specify specific shares on sell orders. Basket Trading provides functionality to establish and update orders in both shares and dollars. Orders are transmitted only in shares and the application rounds orders down to the nearest whole share.
6. Net Change Detail. Unrealized Net Change detail for Purchased or Watch Baskets is meant only as a guideline for individual position performance and basket performance and is not intended for tax planning. On the Basket Summary page, Purchased Baskets will display a current market value of the basket in its entirety based on the sum of the market values for individual positions within the basket. The Unrealized Net Change figure is derived from the comparison of that current market value against the initial purchase price of your basket. The initial purchase price of the basket is based on the principal amount of each position within the basket, exclusive of commissions. If you have multiple purchases of the same position within a basket, an average purchase price is used for that position. Watch Baskets on the Basket Summary page will also display a current market value for the basket but the Unrealized Net Change figure is derived from a comparison against the last time you updated and saved any changes to the Watch Basket.
   In viewing your holdings on the Details screen, the Unrealized Net Change and Unrealized Net Change % figures are derived from comparisons of current real time market values for the individual positions against the original purchase price or average purchase price. While the Unrealized Net Change of a Purchased Basket will account for additional purchases, liquidations and certain corporate actions, it will not provide a true tax cost basis of your positions within the basket or the basket as a whole. Securities that are liquidated entirely from a basket will not be tracked in Unrealized Net Change detail. You should not use Unrealized Net Change detail provided for Baskets or individual positions within Baskets as the primary basis for an investment decision.
7. Specific Shares. Fidelity provides you with the opportunity to select Specific Shares for sell orders within baskets. If you select Specific Shares and own a security within a basket or multiple Baskets and as a separate position within your account, Fidelity will provide you detail on all tax lots for the security. A unique feature of Basket Trading is that you can assign lots after your Basket order has been entered. You will be prompted to Select Lot Details from the Trade Basket Confirmation screen. You will also have the ability to assign lots from the Order Details screen. Due to the fact that all orders are market orders, the ability to update specific share lots is only available prior to our nightly batch cycle process, which generally starts at approximately 10:00 p.m. ET. If you do not update specific share detail prior to the nightly batch cycle, sell orders will be processed under the FIFO basis. If you do not select Specific Shares at the time of order entry, the default basis is FIFO.
8. Trade Verification. For Basket Trading we have streamlined the Trade Verification screen to accommodate a condensed view of multiple orders. You will receive "Attention" messages for individual securities if there is information we feel you should be aware of prior to placing your order. These are the same messages you would receive on the Trade Stocks screen if entering an order on an individual security. Security detail only provides the symbol of the securities you are placing your order on, not the name of the security or security description. Make sure that the symbol(s) you are entering match the security you are interested in trading.

Terms and Conditions

Use of Fidelity's Basket Trading product is subject to the terms, conditions and policies set forth by Fidelity and subject to change without notice. By using the Basket Trading product, you acknowledge your understanding and acceptance of the terms set forth herein. Should you not agree with these terms, you will not be able to use the Basket Trading product. Your use of the Basket Trading product is also subject to your other agreements with Fidelity.

1. Initial creation of a basket requires a $2,000 minimum investment. If at the time the basket orders are executed, market conditions have reduced the value of the basket to below $2,000, the order will still be processed.
2. Initial creation of a basket requires a minimum of 2 securities and a maximum of 50 securities. You can have an unlimited number of Purchased Baskets, however, Watch Baskets are limited to twenty.
3. Fidelity will only accept market orders within the Basket Trading application. This is both in the creation of a Basket and in the liquidation of positions or the entire basket. If you choose to enter a sell limit order on a position held within a basket, you can do this from the Trade Stocks screen, which is not part of Basket Trading. You will be given a warning message that the order you are entering may break a basket. Keep in mind that sell orders outside of the basket trading application will liquidate shares held outside of any baskets first. Additional shares needed to complete the sell order will be sold based on logic that has the least impact to the fewest number of baskets. If you have multiple baskets that hold the same security as well as holding the security outside the baskets, it is possible your limit order would not liquidate shares from the basket you intended as there is no way to identify a specific basket outside the basket trading application.
4. Although all buy and sell orders through the Basket Trading product are market orders, there is the possibility that certain orders will not be executed. For example, if a security that you are trading as part of a basket had halted trading at the time of order entry and did not resume trading through market close, this security would not be part of your purchased basket. The weightings on remaining positions that were purchased will not adjust to account for the un-purchased position(s). For example: If you are entering a share weighted order to purchase an 11-security basket at 100 shares for each position, if one of the orders was not executed, the 100 shares that were assigned to that position will not be distributed across the 10 positions that were purchased, making them 110 share orders. The 10 positions that were purchased will remain 100 shares each. You can attempt to buy/sell the security that was not purchased in the basket at another time.
5. In addition, certain orders entered at or near market close may not receive an execution. We will attempt to warn you at the time of trade verification that you are entering orders near market close. If some orders execute and others do not, the orders that do not execute will not carry over to the next market session and will have to be reentered. The weightings of orders that did execute will not be adjusted. In all cases, unexecuted market orders will not carry over to the next trading session, and they will need to be reentered if you would like them to be part of a basket or to be removed from a basket.
6. Subsequent investments in individual securities held within a basket do not need to meet an additional minimum.
7. Listed and over-the-counter equities are the only eligible security type for Basket Trades.
8. Basket Trades can be placed in your cash or margin account. If your account has a margin agreement, buy orders for baskets will default to margin. Sell orders will default to the account type where the position is held (cash or margin), within a basket. If you exceed the buying power of your account on a basket trade, you will receive an error message that will block you from completing the order. In that situation, you would have to scale back the basket to meet the available buying power in the account.
9. Commissions for basket trades will be on an individual security basis per the commission schedule assigned to the account that you are placing the basket trade in. For example; if you are entering a basket trade that includes 10 securities, you will be charged a commission on each individual security within the basket based on your current commission schedule.
10. Basket trading is available in all account registration types (Individual, Joint, Retirement, etc.), unless specified otherwise by the terms of the account.
11. Allocation weightings for baskets can be established using Dollars, Shares, or Percentage. If you do not select an allocation method, the default allocation will be Dollars but orders will be submitted in shares.
12. Allocation of shares will not produce a fractional share distribution. Shares will be rounded down to the nearest whole share.
13. Cancel and Replace functionality is not available on basket trades. You can attempt to place a Cancel order of an individual order from the Order Details screen if an order has not been executed and reenter a new order in basket trading. However, use caution when entering the new order as most market orders receive an execution.
14. Modifications to Watch and Purchased baskets can only be done in dollars or shares. In order to update the modifications you have made to a basket, you must click the Recalculate button.
15. Review all orders listed on the Trade Basket Verification screen prior to clicking the Place Order button. Basket trading will submit all orders at the same time, and there will not be an additional verification for each individual order.
16. Fidelity provides you with the opportunity to select Specific Shares for sell orders within Baskets. If you select Specific Shares and own a security within a Basket or multiple Baskets and as a separate position within your account, Fidelity will provide you detail on all tax lots for the security. A unique feature of Basket Trading is that you can assign lots after your Basket order has been entered. You will be prompted to Select Lot Details from the Trade Basket Confirmation screen. You will also have the ability to assign lots from the Order Details screen. Due to the fact that all orders are market orders, the ability to update specific share lots is only available prior to our nightly batch cycle process, which generally starts at approximately 10:00 p.m. ET. If you do not update specific share detail prior to the nightly batch cycle, sell orders will be processed under the FIFO basis. If you do not select Specific Shares at the time of order entry, the default basis is FIFO.
17. The Position screen will display a (b) under any security in which you hold some or all shares in a basket, which is denoted in the footnote as a basket position. You may consult the Basket Summary screen to determine which baskets hold certain positions.
18. Transaction History will provide the name of the basket in the description of any security that was traded as part of a basket. If you sell outside of a basket a security that you also hold in a basket, Transaction History will not display the name of the basket.
19. Corporate actions such as stock splits, stock dividends, cash dividends, mergers, rights, warrants, reverse splits, tenders, spinoffs and name changes may have varying degrees of impact on your basket positions. Cash distributions will be credited to your core account. Reinvested share distributions may be allocated across multiple holdings if you hold a security in more than one basket. Fractional share distributions are not eligible in basket positions but will be listed as part of your entire position. Some corporate actions such as participation in a tender offer may require removal of the position from tracking in the basket application.
20. The Order Details screen will provide the name of the basket in the order description if the order was entered in the Basket Trading application. If the order was entered in the Trade Stocks screen, it is considered to be outside the basket and there will be no identifier in Order Details.
21. Transactions are subject to all other agreements applicable to your account(s).
22. Trade confirmations for basket trades will be provided for each transaction in a basket.
23. Statements will provide the same detail or identifiers of basket positions as displayed online in Positions, Transaction Details and Order Details.