Stock Contract Split and Reverse Split Position Adjustment in New Copy Trading

[Estimated reading time: 3 mins]

This article applies to users who hold stock contract positions, such as U.S. stock contracts, through Bitget’s new futures copy trading feature. When the underlying stock undergoes a stock split or reverse stock split, the system will automatically adjust your position. No action is required from you.

 

What is a stock contract split or reverse split adjustment?

When the trader you follow holds stock contract positions, such as U.S. stock contracts, and the underlying stock undergoes a stock split or reverse stock split, the system will automatically adjust the position quantity for both you and the trader.

For example, if a company splits 1 share into 4 shares, the system will adjust the position quantity based on the new ratio to help ensure your account value is not affected.

This adjustment usually applies only to stock contract positions. Crypto contracts and commodity contracts are not affected by this adjustment logic.

 

How this affects your position

After a stock split or reverse split occurs, the system will automatically process the related copy trade positions:

• Your copy trade position will be automatically “closed first, then rebuilt based on the new ratio” by the system.

• The entire process is completed by the system. You do not need to manually close or reopen the position.

• The actual value of your position remains unchanged before and after the adjustment.

• The position quantity and price will be adjusted according to the split or reverse split ratio.

For example, after a 1-for-4 stock split, your position quantity becomes four times the original amount, while the corresponding price is adjusted proportionally. As a result, the total position value remains unchanged due to the stock split itself.

 

Where you can see this change

After the adjustment is completed, you will receive in-app notifications:

• “Your copy trade position has completed split/reverse split closing”: The old position has been closed.

• “Your copy trade position has been rebuilt based on the new ratio”: The new position has been created.

You can also check your copy trading records for order types marked with “Split/Reverse Split”:

• Split/Reverse Split Long Open: The system opens a long position for you based on the new ratio.

• Split/Reverse Split Short Open: The system opens a short position for you based on the new ratio.

• Split/Reverse Split Long Close: The system closes the old long position.

• Split/Reverse Split Short Close: The system closes the old short position.

These records are automatically generated by the system during the adjustment. They do not mean that you or the trader manually placed these orders.

 

FAQs

1. Will my copy trading be interrupted during the split or reverse split adjustment?

No. The system will automatically close the old position and rebuild the new position. After the new position is created, your copy trading relationship will continue, and your position will still follow the trader’s closing action based on the applicable copy trading rules.

2. Will my account value decrease after the adjustment?

No. The adjustment only changes the position quantity and corresponding price based on the split or reverse split ratio. It does not change the actual value of your position. For example, after a 1-for-4 stock split, the position quantity becomes four times the original amount, while the price is adjusted proportionally, so the total value remains unchanged.

3. Will crypto contracts, such as BTC or ETH, be affected?

No. Split and reverse split adjustments only apply to stock contract positions, such as U.S. stock contracts. Crypto contracts and commodity contracts are not affected.

4. Does the “Split/Reverse Split” label in my copy trading records mean something went wrong?

No. This is normal system behavior. Labels such as “Split/Reverse Split Long Open,” “Split/Reverse Split Short Open,” “Split/Reverse Split Long Close,” and “Split/Reverse Split Short Close” indicate that the record was automatically generated by the system due to a split or reverse split adjustment. It was not manually placed by you or the trader.

5. What happens if the adjusted position quantity becomes extremely small after a reverse split?

If the calculated position quantity is close to 0 due to precision limits after a reverse split, the system will not rebuild the position. In this case, the position will automatically end.