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CFD position when company is sold


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14 hours ago, Bobabc said:

Company I have CFD with is subject to takeover. On the premise that bid is successful  Will I benefit from the sale or am I at risk if I do not close CFD’s before share is delisted?

Thanks in advance

Hi @Bobabc

CFD positions are also included in the offer. Since the corporate action can have a direct impact on the price of a stock or have some effect on the stock, IG must replicate what occurs in the underlying market on clients leveraged positions

The affect that a takeover will have on an existing CFD position will vary, depending on whether the acquiring company offers cash, stock, or a combination of both for the target company.

Cash takeovers:

Your position will be closed out when the cash is received and adjusted for interest, depending on the contract of the trade.

Stock takeovers:

Your original position will be closed, and a new position will be opened to reflect the terms of the takeover, based on the previous night’s closing price. Any stops or limits will be adjusted accordingly.

Cash and stock takeovers:

The original position will be closed, and a new position will be opened to reflect the terms of the takeover based on the previous night’s closing price and the cash offer, and adjusted for interest depending on the contract of the bet. Any attached stops or limits will be adjusted.

All the best, OfentseIG

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