Contract for Difference (CFD) is a leveraged financial instrument, which allows you to speculate on price movements of different markets, such as indices, commodities, shares and treasuries or its derivatives or value estimations. Unlike traditional trading on those markets, you do not need large amount of capital to start trading — CFDs are traded on margin, like Forex. CFDs can be used as to speculate on up and down movements, as to hedge or diversify your equities of commodities portfolio without the significant collateral requirements and lot sizes associated with classic Futures trading. Although the price of the CFD usually reflects the price of the underlying asset, this is not necessary the case. Please be advised, that you are not buying or getting any ownership of the underlying asset itself. Corporate actions are events such as, but not limited to, rights issue, stock splits, reverse stock splits, mergers, acquisitions, spin-offs, and other events that may impact the company and its shares.
Since stock CFDs, ETFs closely connected to the price movement of the underlying asset, stock CFDs, ETFs positions are fully affected by corporate actions on the underlying asset. In general, in the event of any corporate actions, Alfa Crown will act in commercially reasonable manner to determine the appropriate measures, including adjustment of positions and prices to preserve the economic equivalent of stock CFDs, ETFs or to reflect the effect of the event on the relevant underlying asset. The economic effect of the corporate action for stock CFDs, ETFs holders will be generally reflected as if they have long or short position in the underlying asset. Due to restrictions implemented by regulatory bodies, underlying stock exchanges, or liquidity providers that Alfa Crown cooperates with, shorting of stock CFDs, ETFs may be restricted. For all corporate actions you are required to closely monitor for any corporate action by yourself. Alfa Crown is not obliged to proactively contact clients’ which positions may be affected by corporate action. Please contact your Account Manager or our Support Desk beforehand if you need more information on how a particular corporate action may affect your stock CFD, ETF position. Alfa Crown reserves the right to adjust for affected by corporate action stock CFDs, ETFs afterwards.