Handling Stock Splits and Reverse Splits in TraderSync

Occasionally, you may encounter trades in TraderSync that appear as open when they should be closed. This issue often arises if you held a position during a stock split or reverse split, causing a domino effect that leaves trades improperly logged. Unfortunately, brokers do not always report these events accurately, meaning you must manually adjust the trade executions to reflect the split or reverse split. Doing so will ensure that your trades close as they should.

Steps to Handle a Stock Split or Reverse Split:

You have two options for handling a stock split or reverse split in TraderSync: Adjusting Execution Details or Adding a New Order. Both methods will help you properly reflect the split and close any open positions accurately.

Option 1: Adjusting Execution Details

1. Identify the Position: Locate the position that was affected by the stock split or reverse split.
2. Adjust Execution Quantity and Price: Modify the execution quantity and price for the trades that took place before the split/reverse split date.
   • Price Adjustment:
     • For a stock split, divide the price by the split ratio.
     • For a reverse split, multiply the price by the reverse split ratio.
   • Quantity Adjustment:
     • For a stock split, multiply the quantity by the split ratio.
     • For a reverse split, divide the quantity by the reverse split ratio.
3. Verify Trade Status: After making these adjustments, the trade should now be closed as expected.

Example for Option 1:

For a Stock Split:

Imagine you held 100 shares of Company XYZ at $50 per share before a 2-for-1 stock split occurred. After the split:

• Price Adjustment: $50 ÷ 2 = $25 per share.
• Quantity Adjustment: 100 shares × 2 = 200 shares.

For a Reverse Split:

If instead, there was a 1-for-2 reverse split:

• Price Adjustment: $50 × 2 = $100 per share.
• Quantity Adjustment: 100 shares ÷ 2 = 50 shares.

Option 2: Adding a New Order

1. Identify the Position: Locate the position that was affected by the stock split or reverse split.
2. Add a New Order to Reflect the Split: Create a new order that reflects the additional shares you received (for a split) or the reduced shares (for a reverse split).
   • Quantity Adjustment: Add an order with the additional shares received from the split or subtract shares in case of a reverse split.
   • Price Adjustment: Set the price of this order to zero to avoid altering your overall cost basis.
   • Date and Time: Use the date of the split for this order. You can select any time for the order.
3. Verify Trade Status: This new order should correctly reflect the split and adjust your open positions accordingly.

Example for Option 2:

For a Stock Split:

If you held 5 shares before a 10-for-1 stock split on July 15, 2024:

• Add a new order with 45 shares at a price o
  

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