Common use of Dealing Services Clause in Contracts

Dealing Services. (a) You will designate each order to sell as a “long” order or a “short” order. A “short” sale means the sale of a security not owned by you. CFI may, at its sole discretion and without prior notice to you, cover any short sale in your Account. You understand that “cover” means the purchase, at the current market price, of securities that were previously sold short. When you designate a sale as “long”, you are promising to CFI that you own the security and promise that, if the security is not in CFI’s possession when you place the sale order, you will deliver the security to CFI by the settlement date. If you fail to deliver the security to CFI by the settlement date, CFI may purchase the security, at the current market price, for your Account and you will be responsible and agree to compensate CFI for any loss, commission and/or fees.