# What happens to CFD short position re capital raising



## skc (29 October 2009)

I have a short CFD position on a share that's gone into a trading halt pending a capital raising. Reading the CFD provider's PDS, they will make some adjustments to the share base on theoretical ex-rights price (or similar).

Has anyone been through this and what was the outcome?


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## skyQuake (29 October 2009)

skc said:


> I have a short CFD position on a share that's gone into a trading halt pending a capital raising. Reading the CFD provider's PDS, they will make some adjustments to the share base on theoretical ex-rights price (or similar).
> 
> Has anyone been through this and what was the outcome?




Rights issue - Gets adjusted (nothing much happens to ur P/L)

Placement/SPP - No adjustment (u win)

Placement+Rights - Adjusted to the extent of the rights issue (u win less)


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## skc (30 October 2009)

skyQuake said:


> Rights issue - Gets adjusted (nothing much happens to ur P/L)
> 
> Placement/SPP - No adjustment (u win)
> 
> Placement+Rights - Adjusted to the extent of the rights issue (u win less)




Thanks mate.

"Placement. Placement. Placement." *Chanting


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## skc (3 November 2009)

skc said:


> Thanks mate.
> 
> "Placement. Placement. Placement." *Chanting




For the record the share was TZN. They did a nice big placement and share opened 15% lower. No adjustment on the P/L so far


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