Common use of CLOSING A CFD TRANSACTION Clause in Contracts

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. 4.1. You acknowledge that: a) Most (but not all…) CFDs do not expire or have a fixed term of existenceex- istence, 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- mentAgreement. 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 position - 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 calculate the remaining payment rights and obligations to reflect movements move- ments in the Contract Value since the previous business close (including any other credits/debits). Since you en- ter enter into a position to Close Out the existing positionposi- tion, 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 Instru- ment 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 be- comes insolvent, the CFD Transaction will be taken to have been Closed Out at that time. The Closing Price of the CFD Transaction Trans- action will be determined by us and we may consider a number of factors we believe be- lieve appropriate in the circum- stancescircumstances. 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 absolute discretion, elect to terminate the relevant CFD Transaction and make necessary ad- justments adjustments that we believe are necessary. 4.8. All adjustments or price calculations made by us in respect of a CFD Transaction Transac- tion is binding on you.