What happens if an underlying stock is delisted?
It depends on the circumstances. For a cash takeover, we close your position using the cash terms of the offer. Where a delisting results in shares of a new or acquiring company, we’ll book an equivalent position where possible, with size and price adjusted to the takeover ratio.
In other cases, we close your position at the last available market price.
What happens if a company becomes insolvent?
Insolvency, liquidation or similar proceedings can significantly reduce the value of a company’s securities, or make them worthless.
If the securities are cancelled or assigned no value, we close your position at zero. This typically follows suspension or delisting from the exchange.
Can my position become worthless?
Yes. In cases of insolvency, liquidation or severe financial distress, a stock may lose all its value.
Where no recovery is available through the relevant proceedings, the position is closed at zero.