Dear traders,
We would like to provide you with the following important information:
Upcoming Split on Apple’s Stocks
On Friday, June 6th, 2014, at the close of market, the Apple corporation will execute a 7-for-1 split of all its stocks. For you as our clients, this means that 6 additional CFDs on the Apple stock (AAPL) will be issued for each respective CFD traded in a position which remains open after that date. Thus, on Monday, June 9th, 2014, the following changes will apply to your trading terminals:
- All open market orders will be replaced with new ones reflecting the new price and volume conditions
- All pending orders will be deleted
We will use the following example to illustrate the effect:
Let’s assume that on June 6th (before the stock split) you have placed an order of 10 CFDs at a price of 630 USD per stock (total value of investment – 6300 USD) and you decide to hold that position after June 9th (when the stock split will take effect). If there is no price movement (up or down) in that period, on June 9th you will notice that your order has the following parameters – 70 CFDs at the price of 90 USD each (see the table below) – without any change in the total investment.
Stage 1
|
Before Apple's stock split |
|||
|
Ticket Size |
Price |
Total Investment |
|
|
10 CFDs |
630 USD |
6300 USD |
|
Stage 2
|
After Apple's stock split |
|||
|
TICKET SIZE |
PRICE |
TOTAL INVESTMENT |
|
|
70 CFDs |
90 USD |
6300 USD |
|
It is as simple as that.
According to Apple’s announcement, the main reason for the corporation behind such stock split is to increase the number of investors who will be able to access Apple’s stocks. Such practice will not affect neither your trading account balance, nor our 100% DMA terms and conditions. However, we would like to make sure that you are well-informed and prepared about the related changes on JFD’s MT4+ platform.
Should you have any questions, our friendly, open and knowledgeable Customer Support team is ready to assist you 24/5.