Closing a CFD Contract Clause Samples
The 'Closing a CFD Contract' clause defines the process and conditions under which a contract for difference (CFD) is terminated or settled between the parties. Typically, this involves specifying how and when either party can initiate the closing of a position, the calculation of the final settlement amount based on the difference between the opening and closing prices, and the procedures for payment or delivery. For example, the clause may outline that a position can be closed at the prevailing market price or upon reaching a predetermined trigger event. Its core practical function is to provide a clear and standardized mechanism for ending CFD positions, thereby reducing disputes and ensuring both parties understand their rights and obligations at the contract's conclusion.
Closing a CFD Contract. 4.1. To close any CFD Contract in whole or in part you must enter into a second CFD Contract in relation to the same Reference Asset as the first CFD Contract but you must sell if the first CFD Contract was a purchase and you must purchase if the first CFD Contract was a sell. We will treat your Order to open the new position as an instruction to close the existing position to the extent of the size of the new position. If the new position is greater in size than the first position then the first position will be closed in full and a CFD Contract opened in relation to the excess size of the new position.
4.2. You acknowledge that Spreads, including market Spreads, can and do widen significantly in some circumstances, that they may not be the same size and that there is no limit on how large they may be. You acknowledge that when you close a Transaction, the Spread may be larger or smaller than the Spread when the Transaction was opened. For Transactions transacted when the Market of any Reference Asset is closed or in respect of which there is no Market for the Reference Asset, the bid and offer price figures that we quote will reflect what we believe the market price in an investment would be at that time. You acknowledge that such figures will be set by us at our reasonable discretion. Our quotation is not guaranteed to be within any specific percentage of the quotation of the Market of the Reference Asset, and the Spread quoted by us will reflect our view of prevailing market conditions. You undertake and agree not to use our bid and offer prices for any purpose other than for your own trading purpose, and you agree not to distribute our bid and offer prices to any other person whether such redistribution be for commercial or other purposes.
4.3. In addition to our rights at clause 22 of this Customer Agreement and our rights pursuant to clause 2.3 of this Schedule, we may close any Transaction in our sole discretion at any time without notice in the event that:
4.3.1. if it is a ‘sell’ Transaction, and due to illiquidity in the relevant Reference Asset we are unable to borrow a sufficient number of such Reference Asset to settle any underlying hedge position in respect of the Transaction; or
4.3.2. if we are required, at any time, by a lender to return any Reference Asset borrowed by us which relates to a Transaction and we are then unable to maintain a hedge position in respect of that Transaction; or
4.3.3. if at any time we are otherwise unable to e...
Closing a CFD Contract. You agree and acknowledge to us that:
a. At any time, you may give Blueberry Markets an instruction (by telephone or on the Trading Platform) of your intention to close a Position (whether in whole or in part) by specifying the Position and the proportion of the Position that you wish to close;
b. Upon receipt of a Closing Notice, Blueberry Markets will use reasonable endeavors to provide a quote for the Closing Price and notify you of that quote. It is your obligation to notify Blueberry Markets as soon as possible as to whether you are willing to accept the Closing Price. The Closing Price is not guaranteed as it is subject to market conditions and is therefore subject to change at short notice. Should you accept the Closing Price, the Position, or relevant portion of the Position, will be closed on the Closing Date at the Closing Price;
c. If we cannot determine a price because trading in the Underlying Market is limited, suspended, and/or a price cannot be determined by our Liquidity provider(s), then the Closing Price may, at its discretion, be determined by Blueberry Markets who may have regard to any factors it considers appropriate including, for example, the last traded price of the Underlying Market;
d. Without limiting Blueberry Markets discretion, if any Position ceases to be quoted on a Relevant Exchange, or is suspended from quotation, or subject to a trading halt for 5 or more consecutive Business Days or is removed from the Trading Platform, Blueberry Markets may, in its sole discretion, elect to terminate the relevant Position by providing you with at least ten (10) Business Days’ notice to you;
e. It may not be possible to close out a Position if there is a suspension of trading, or a trading halt, in respect of the Underlying Market. In such a circumstance, Blueberry Markets may decide, in its sole discretion, not to close a Position;
f. Blueberry Markets will close a Position(s) if your Equity only covers 50% of the Total Margin Requirement for your open Positions. Your worst offending Position (i.e. the contract with the largest loss) will be automatically closed at the first price available and as determined by the CFD price, liquidity, and other factors that may impact on execution times;
g. Without limiting the above, if at any time trading on a Relevant Exchange is suspended or halted in any Underlying Market, Blueberry Markets will, in determining the closing value of a Position and, at its discretion, have regard to the last trad...
Closing a CFD Contract. To close a CFD Contract in whole or in part You must enter into a second CFD Contract in relation to the same Reference Asset as the first CFD Contract but You must sell if the first CFD Contract was a purchase and you must purchase if the first CFD Contract was a sell. ▇▇▇▇▇.▇▇▇ Canada will treat your order to open a new position as an instruction to close the existing position to the extent of the size of the new position. If the new position is greater in size than the first position then the first position will be closed in full and a CFD Contract opened in relation to the excess size of the new position.