CFD Contract During Company Takeover

Hi All,

First post, apologies if this is something of an amateur question. If I hold a CFD contract on a stock what happens under the situation of a buyout.

Say i hold X contracts at a share price of 10p, then there is a buyout offer of say 20p.

1. if i do not close the position and the company gets bought out at the rate of 20p would the position close at 20p per share?

2. or would i have to close the position prior to the buyout (at the increased price based on the news?)

Thanks in advance

Steve

Your position will be closed before the company in question gets de-listed.