Key features of ASX Listed CFDs

It is important to familiarise yourself with the key features of ASX Listed CFDs before trading.

Daily settlement

At the end of each trading day, all positions in ASX Listed CFDs are 'marked to market' using the Daily Settlement Price (DSP).

Expiry

ASX Listed CFDs do not expire. They are perpetual in nature. The only way to close a position is to trade the opposite side of your position1. 

Corporate action adjustments

Positions in an ASX Equity CFD can be subject to corporate action adjustments. See Trading information   

Exchange for physical

Traders can convert their ASX Equity CFD position into stock. This conversion is allowed through the Exchange for Physical (EFP) facility. The EFP facility enables you to complete both sides of the conversion at a set price eliminating the risk of a price movement before you complete the transaction. To undertake an EFP, you need to speak to your ASX Listed CFD adviser. 

ASX Listed CFDs Exchange for Physical

Shares and ASX Listed CFDs are transacted off market at the same
time in the same price and volume as arranged by broker.

1There are limited circumstances in which ASX may expire and delist contracts. This is only likely to occur where the contract has open positions in the following situations:
There is a lack of liquidity in the contract;
The underlying has been delisted; or
Access to the data of the underlying instrument becomes permanently unavailable (for example, where an index provider ceases to calculate an index or terminates the index provider agreement with ASX).
If the above action were to be taken, ASX would provide as much notice to the market as possible to enable the closing out of open positions.