The Split procedure runs on the server every day at 15:00 server time. During the procedure, all active pending orders (Limit, Stop) for the related stock are removed.
The weighted average price and sum volume are calculated separately for all open deals in short positions and all open deals in long positions of an instrument. They are assigned as a new open price and new volume for the deal, with maximum volume for long and short deals accordingly. In case a deal receives fractional stocks, such stocks will be liquidated for cash transactions – "Split cash correction". The volume of other deals for related instruments will be reset to 0 and moved to the History tab.
Splits on the chart
You can view all past and future split dates on the charts of the trading platform.
Case 1 (Split)
Conditions:
- Stock split type: 1:4 (each existing share becomes 4 shares).
- Shares owned before split: 7
- Share price before split: $99
Calculation:
1. New number of shares after split:
New Shares = Current Shares × Split Ratio (4) = 7×4 = 28 shares
2. New share price after split:
New Price per Share = Old Price per Share/Split Ratio (4) = 99/4 = $24.75
Result:
- Shares owned after split: 28
- Share price after split: $24.7
Total value of shares remains the same: 7 × 99 = 28 × 24.75 = $693
Case 2 (Reverse split)
Conditions:
- Reverse stock split type: 5:1 (every 5 shares are consolidated into 1)
- Shares owned before reverse split: 5
- Share price before reverse split: $2
Calculation:
1. New number of shares after reverse split:
New Shares = Current Shares/Reverse Split Ratio (5) = 5/5 = 1 share
2. New share price after reverse split:
New Price per Share = Old Price per Share × Reverse Split Ratio (5) = 2×5 = $10
Result:
- Shares Owned After Reverse Split: 1 share
- Share Price After Reverse Split: $10
Total Value of Shares Remains the Same: 5 × 2 = 1×10 = $10