If you have a position on a company which performs a stock split or consolidation, we’ll close your original position at its opening level and open a new trade on your behalf. The new position will reflect the ratio of the split/consolidation, ensuring that you don’t gain or lose any capital in the process.
Any attached stops or limits will be adjusted according to the terms of the split/consolidation to ensure your monetary risk remains the same.
Stock split example
Apple announce a stock split at a ratio of 10-1. On the ex-date, you have 100 shares trading at $5 per share.
We close your original position, and open a new one. You now have 1000 shares trading at $0.50 per share – so the total size of your position 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.