If you have an open position on a stock that announces a spinoff, then we’ll create a position on the new company at a level of zero in accordance with the terms of the spinoff. You can then choose whether to trade the new company or not.
If you have a guaranteed stop on your position, then we’ll amend it in accordance with the terms of the offer. A separate position will then be posted on your account in the name of the spun-off company, with a stop attached to ensure your total monetary risk remains the same.
Please note: This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.