CLOSING A CFD TRANSACTION. 4.1. You acknowledge that:
a) Most (but not all…) CFDs do not expire or have a fixed term of existence, so they must be Closed Out by you (or us).
b) CFDs with an expiry date will be governed by clauses 10.7 through 10.16 of the Agree- ment.
4.2. If you wish to close an Open Position in respect of a CFD Transaction, you enter into a new position, which is equal and opposite to the Open Position. To close a ‘bought’ or ‘long’ po- sition - you sell. To close a ‘short’ or ‘sold’ position - you buy.
4.3. At the time that the Open Positions are Closed Out, the Electronic Trading Service will cal- culate the remaining payment rights and obligations to reflect movements in the Contract Value since the previous business close (including any other credits/debits). Since you en- ter into a position to Close Out the existing position, there may be a fee on the position used to close the position, which you agree to pay.
4.4. You may give us notice of your intention to close any CFD (whether in whole or part) by specifying the Underlying Instrument and the quantity of CFDs that you wish to close. This must be done by you placing an Order for a CFD Transaction, which, if accepted, would Close Out the CFD that you wish to close.
4.5. At the Closing Out of a CFD Transaction, if there is a difference between the Closing Value and the Contract Value of the CFD it must be accounted for in the following way:
a) if the Closing Value is greater than the Contract Value, the Short Party must pay to the Long Party the difference; and –
b) if the Closing Value is less than the Contract Value, the Long Party must pay to the Short Party the difference.
4.6. If the issuer whose security represents the Underlying Instrument on which all or part of a CFD Transaction is based becomes insolvent, the CFD Transaction will be taken to have been Closed Out at that time. The Closing Price of the CFD Transaction will be determined by us and we may consider a number of factors we believe appropriate in the circum- stances.
4.7. If the Underlying Instrument on which the CFD Transaction is based ceases to be listed for quotation on an Exchange, or is suspended or is halted from quotation, we may, in its ab- solute discretion, elect to terminate the relevant CFD Transaction and make necessary ad- justments that we believe are necessary.
4.8. All adjustments or price calculations made by us in respect of a CFD Transaction is binding on you.
CLOSING A CFD TRANSACTION. 5.1. On a Business Day on which either of us wishes to close any CFD Transaction (whether in whole or in part) either of us may give a Closing Notice to the other specifying the CFD Transaction it wishes to close, the related CFD Instrument, the CFD Quantity and the Closing Date.
5.2. Any Closing Notice served by you shall take effect immediately subject to prevailing Market conditions.
5.3. Any Closing Notice served by us subject to Section 5.1 of this Schedule 4 shall take effect two (2) Business Days following the giving of the Closing Notice.
5.4. Following receipt of a Closing Notice, we shall inform you of the Closing Price of the CFD Transaction and the CFD Transaction will be closed on that price on the Closing Date. Any amounts payable by either part to the CFD Transaction are immediately due and payable on closing and shall be paid on the Contract Settlement Date.
5.5. In addition to our rights in Section 13 (Events of Default) of the Agreement and our rights pursuant to Section 5.1 of this Schedule 4 to serve a Closing Notice, we may in our sole discretion close any CFD Transaction at any time without prior notice in the event that:
5.5.1. It is a “sell” CFD Transaction, and due to illiquidity in the relevant CFD Instrument we are unable to borrow a sufficient number of such CFD Instruments to settle any underlying hedge position in respect of the CFD Transaction; or
5.5.2. We are required, at any time, to a lender to return any CFD Instrument, borrowed by us which relates to a CFD Transaction and we are then unable to maintain a hedge position in respect of that CFD Transaction; or
5.5.3. At any time we are unable to establish or maintain a hedge position in respect of a CFD Transaction; or
5.5.4. You fail to honour a Xxxxxx Call in accordance with Section 11 of the Agreement (Margining Arrangements); or
5.5.5. The Agreement is terminated.
CLOSING A CFD TRANSACTION. 4.1 You acknowledge that:
(a) CFDs do not expire or have a fixed term of existence, so they must be Closed Out by you (or us).
(b) CFDs with an expiry date will be governed by clauses 9.7 to
