Common use of Netting Provisions Clause in Contracts

Netting Provisions. Where you give an order to enter into a purchase Transaction (a ‘Long Position’) whilst already maintaining an open position in a selling Transaction (a ‘Short Position’) in the same Instrument, or vice versa then we will treat your instruction to open the new position as an instruction to close the existing position to the extent of the size of the new position. Orders will be netted off under this clause in the order in which they are placed. If the new position is greater in size than the existing position, then the existing position will be closed in full and a new Transaction will be opened in relation to the excess size of the new position. FX: Each FX Transaction entered into by the Customer with Velocity will immediately, upon acceptance by Velocity and at their discretion, be netted with all then existing FX Transactions between the Customer and Velocity for the same paired currencies having the same settlement or delivery date so as to constitute a single FX Transaction. Further, if more than one delivery of a particular currency is to be made between the Customer and Velocity pursuant to a foreign currency contract on any single delivery date, each party shall aggregate the amounts due by it and only the difference, if any, between these aggregate amounts shall be delivered by the party owing the larger amount to the other party.