Reverse Stock Split Treatment
- All positions will be closed at the end of day rate.
- Any floating profit or loss will be realized.
- Positions are then automatically reopened at an adjusted open rate and position size, to retain the same notional value as the closed position.
- For example if a client has 100 contracts opened and the end of day rate is 300.00 and the underlying share has a 10:1 Reverse Stock Split
- The old position will be closed at 300.00
- A new position will be opened for 10 contracts at an opening rate of 3000.00
- Pending orders including stop/limits are deleted and required to be re-entered manually by clients.
- If the reverse split ratio is not a whole number, then only the closest whole number of contracts will be reopened. Where rounding is required, we will always round down.
- Margins will be updated accordingly using the same split ratio.