Common use of Contingent Liability Transactions Clause in Contracts

Contingent Liability Transactions. Contingent liability transactions, which are margined, require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in futures, contracts for differences or sell options you may sustain a total loss of the margin you deposit with SSP to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be responsible for the resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. SSP may only carry out margined or contingent liability transactions for you if they are traded on or under the rules of a recognised or designated investment exchange. Contingent liability transactions, which are not so traded, may expose you to substantially greater risk.