Limit orders and stock splits

🤝 Help
1

If you set a sell limit order, and the instrument undergoes a reverse stock split, what will happen? I can imagine a few possibilities - can someone confirm what actually happens…

  1. T212 cancels the order. (This seems the most obvious.)
  2. T212 adjusts the limit and volume to reflect the new valuation when the stock split occurs. (This seems the most useful.)
  3. T212 just fills the order without consideration of the split. (This could be disastrous!)

I presume the same would apply for limit buy orders and stock splits?

2

When a stock split occurs, all pending orders with the instrument are cancelled. You’ll need to place a new limit order with targets adjusted to the instrument’s post-split prices.

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