Shorts do not need to be closed out by tomorrow.
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Shorts do not need to be closed out by tomorrow.
What would happen on Monday?
If I am short on CFDs, how will that play out from Monday?
DO CORPORATE ACTIONS AFFECT THE LOAN OF SECURITIES
Corporate actions are events such as dividend payments, takeovers, rights issue, company restructures, returns of capital, buy backs, options exercise, share purchase
plans, and call payments.
In the event of a corporate action being announced it is likely you will be required to close out the position prior to the entitlement date, or be
required to deliver to us either a cash payment, or shares.
Typically you will have a new position opened short at the issue price. So in this case, if you are short 10,000 shares at $1.40, a new short position of 20,000 shares will be opened at an effective sale price of 53 cents. Say trading opened at 80c, you'd be in $6,000 profit on your original position and $5,400 loss on your new 'rights' position.
You must ensure you have sufficient margin in your account to accommodate these new positions. Additionally, it is also sensible to have significantly extra margin in case they change margin requirements due to heightened volatility.