What Happens When CFDs or Financial Instruments Expire?
When a Contract for Difference (CFD) or a financial instrument linked to an expiry date reaches its expiry date, the position is automatically closed at the last price displayed on the trading platform immediately before the expiry date and time.
What happens next depends on the type of instrument and the platform’s policy:
The position may be cash-settled at the final price at the time of expiry.
Or it may be automatically closed at the available market price.
In some cases, the contract may be rolled over to the next contract if the platform supports this feature.
If you hold a position on an instrument with an expiry date, it cannot remain open indefinitely. Once the expiry date is reached, the position will be handled automatically according to the terms of that instrument.
Therefore, it is always recommended to:
- Check the expiry date of the instrument.
- Review the contract conditions.
- Monitor the position before the expiry date to avoid any unexpected closure.
Evest sends an email notification before the asset expiry date. Therefore, clients should make sure that they are receiving email communications from Evest and that they have not unsubscribed from email notifications.