Stock Splits and Reverse Stock Splits for TradFi Perpetual Contracts

Overview

Listed companies may carry out stock splits or reverse stock splits as part of their corporate actions. Since TradFi Perpetual Contracts are CFD (Contract for Difference) products that track the price performance of underlying stocks, Bybit will automatically adjust the relevant contract parameters and positions when an underlying stock undergoes a stock split or reverse stock split. This ensures that the contracts continue to accurately reflect the stock's adjusted price performance.

Stock Split

A stock split increases the number of outstanding shares while reducing the price per share by the same ratio.

For example, in a 10-for-1 stock split, each share held becomes 10 shares, and the price per share is adjusted to approximately one-tenth of the original price.

Reverse Stock Split

A reverse stock split reduces the number of outstanding shares while increasing the price per share by the same ratio.

For example, in a 1-for-10 reverse stock split, every 10 shares held are consolidated into 1 share, and the price per share is adjusted to approximately 10 times the original price.

This article explains how Bybit adjusts TradFi Perpetual Contracts following stock splits and reverse stock splits.

Adjustment Process for Stock Splits and Reverse Stock Splits

When the underlying stock undergoes a stock split or reverse stock split, Bybit will automatically adjust the corresponding TradFi Perpetual Contract. The adjustment process is as follows:

Phase 1: Announcement

Bybit will publish an announcement in advance (typically around 7 days before the adjustment) outlining the relevant changes.

A banner notification will also be displayed on the affected trading pair's page.

Phase 2: Trading Suspension and Contract Adjustment

At the adjustment time specified in the announcement, trading for the affected pairs will be suspended to allow the system to complete the contract parameter and position adjustments.

The adjustment process typically takes around 30 minutes. If additional time is required, Bybit will issue a separate announcement.

During the adjustment period:

All open orders, Take Profit (TP) orders, and Stop Loss (SL) orders will be automatically canceled. This includes advanced strategy orders such as Split Orders, TWAP, Iceberg Orders, and other algorithmic order types.
A stock split or reverse stock split notification will be displayed on the trading page, along with a link to the relevant announcement for adjustment details.
The system will temporarily freeze affected positions and complete the post-adjustment position conversion. During this period, you cannot open, close, or modify positions.

Phase 3: Trading Resumption

Trading for the affected pairs will automatically resume once all adjustments have been completed. To ensure the accuracy of the adjustment results and system status, a buffer period is reserved. Therefore, the actual resumption time may vary depending on the progress of the adjustment.

After trading resumes:

An adjustment completion banner will be displayed on the trading page, prompting users to review their adjusted positions.
Position quantity, average entry price, and other relevant information will be automatically updated based on the new contract parameters.
Canceled limit orders and TP/SL orders can be viewed in Order History. You may submit new orders as needed.

Impact of Stock Split and Reverse Stock Split Adjustments

Order Handling

To ensure the system can complete the stock split or reverse stock split adjustment smoothly, all pending orders for the affected trading pairs will be automatically canceled at the start of the adjustment. This includes limit orders, conditional orders, TP/SL orders, and advanced orders such as Split Orders, TWAP, Iceberg Orders, and other algorithmic order types.

Canceled orders can be viewed in Order History. If needed, you may submit new orders based on the adjusted contract parameters.

Note: Filled orders and trade history will not be affected.

Price Adjustment

After the stock split or reverse stock split is completed, the system will automatically adjust all affected prices based on the adjustment factor and round them according to the minimum price increment (tick size). The adjusted prices include:

Contract price
Index price
Mark price
Position average entry price

Formula

Adjusted price = Pre-adjustment price ÷ Adjustment factor

Adjustment factor = Post-adjustment shares ÷ Pre-adjustment shares

For the position average entry price, rounding is applied based on the position direction:

Long positions: Rounded up to the nearest tick size.
Short positions: Rounded down to the nearest tick size.

Position Adjustment

During the adjustment process, the system will temporarily freeze affected positions to complete the stock split or reverse stock split adjustment. During this period, you will not be able to open, close, or modify positions.

Once the adjustment is complete, the system will automatically update the position size based on the adjustment factor and the updated contract specifications.

To ensure the adjusted position size meets the new minimum contract size requirement, the system will automatically calculate and settle the required portion of the position before applying the adjustment factor. The remaining position will then be adjusted accordingly.

Formula

Adjustment factor = Adjusted number of shares ÷ Original number of shares = a / b

Position to be settled = MOD(Position size ÷ Minimum contract size, Denominator b of the adjustment factor) × Minimum contract size

Adjusted position size = (Original position size − Position to be settled) × Adjustment factor

Note:

MOD(x, y) returns the remainder after dividing x by y.

Liquidation Risk

To complete the stock split or reverse stock split adjustment, affected positions will be temporarily frozen during the adjustment period and will not be liquidated as a result of the adjustment.

However, under Cross Margin or Portfolio Margin mode, liquidation of other positions in the account due to market volatility may reduce the account's available margin. After the adjustment is completed and trading resumes, the adjusted positions may still face liquidation risk if the account margin is insufficient.

Therefore, it is recommended that you maintain sufficient margin in your account before, during, and after the stock split or reverse stock split adjustment. You should also monitor your account balance and margin levels regularly to help mitigate liquidation risk.

Other Impacts

Charts

After the stock split or reverse stock split adjustment is completed, charts will be rescaled based on the adjusted prices. As a result, pre-adjustment buy/sell markers will be removed to avoid displaying historical prices on the new price scale, which may cause confusion.

However, this will not affect your historical trade records. You can still view pre-adjustment trades in Order History and Trade History. New trades executed after the stock split or reverse stock split will display buy/sell markers as usual.

Note: Since the system needs to rescale chart prices and synchronize historical data, charts may take up to 24 hours to fully update. Temporary display discrepancies during this period are normal.

Trading Bots

If you are using Trading Bots, the system will automatically adjust bot positions during the stock split or reverse stock split adjustment.

However, bot strategy parameters will not be updated automatically. To avoid strategy disruptions caused by parameter mismatches after trading resumes, we recommend pausing your trading bots before the adjustment begins. After trading resumes, update the strategy settings based on the adjusted contract parameters before restarting the bots.

Copy Trading

If Copy Trading is enabled for the affected trading pairs, both Master Traders' and Followers' positions will be frozen and adjusted simultaneously during the adjustment period. All unfilled orders will be automatically canceled.

After trading resumes, Copy Trading relationships will be retained. However, the system will only synchronize new Copy Trading positions after the Master Trader opens a new position. Orders canceled before the adjustment will not be automatically restored.

Demo Trading

If the affected trading pair is also available in Demo Trading, the system will perform the stock split or reverse stock split adjustment simultaneously. The adjustment method and process will be synchronized with the live trading environment, including contract parameters, positions, and order handling.

Example 1: Stock Split

User A holds a long position of 10.13 XYZUSDT with an average entry price of 200.20 USDT. The underlying stock for this contract undergoes a 125-for-100 stock split. The contract has a minimum position size of 0.01 and a minimum price increment (tick size) of 0.05.

	Before split	After split	Notes
Adjustment factor	100	125	125 ÷ 100 = 1.25 = 5/4 a = 5, b = 4
Contract price	210 USDT	168 USDT	210 ÷ 1.25 = 168 USDT
Average entry price	200.20 USDT	160.20 USDT	200.20 ÷ 1.25 = 160.16 USDT. Rounded up to the nearest tick size for long positions: 160.20 USDT
Position to be settled	—	0.01	MOD(10.13 ÷ 0.01, 4) × 0.01 = MOD(1013, 4) × 0.01 = 1 × 0.01 = 0.01 Note: Dividing 1013 by 4 leaves a remainder of 1.
Position affected by adjustment	—	10.12	10.13 − 0.01 = 10.12
Position quantity	10.13	12.65	To ensure the adjusted position meets the minimum contract size requirement, the system first settles 0.01 of the position before applying the adjustment factor. The position size subject to adjustment is therefore 10.12. 10.12 × 1.25 = 12.65
Position value	2,127.30 USDT	2,125.20 USDT	Contract price × Position quantity = 168 × 12.65 = 2,125.20 USDT

Assuming the mark price at the time of settlement is 209 USDT, the PnL for the settled 0.01 position is calculated as follows:

Long PnL = (Exit price − Entry price) × Position quantity

= (209 − 200.20) × 0.01

= 8.80 × 0.01

= 0.088 USDT

Example 2: Reverse Stock Split

User B holds a long position of 10.03 ABCUSDT with an average entry price of 150.10 USDT. The underlying stock for this contract undergoes a 1-for-3 reverse stock split. The contract has a minimum position size of 0.01 and a minimum price increment (tick size) of 0.1 USDT.

	Before split	After split	Notes
Adjustment factor	3	1	1 ÷ 3 = 1/3 a = 1, b = 3
Contract price	152.00 USDT	456.00 USDT	152.00 ÷ (1/3) = 152.00 × 3 = 456.00 USDT
Average entry price	150.10 USDT	450.30 USDT	150.10 ÷ (1/3) = 150.10 × 3 = 450.30 USDT Evenly divisible, so no adjustment is required.
Position to be settled	-	0.01	MOD(10.03 ÷ 0.01, 3) × 0.01 = MOD(1003, 3) × 0.01 = 1 × 0.01 = 0.01 Note: Dividing 1003 by 3 leaves a remainder of 1.
Position affected by adjustment	-	10.02	10.03 − 0.01 = 10.02
Position quantity	10.02	3.34	10.02 × (1/3) = 10.02 ÷ 3 = 3.34
Position value	1,524.56 USDT	1,523.04 USDT	Contract price × Position quantity = 456.00 × 3.34 = 1,523.04 USDT

Assuming the mark price at the time of settlement is 152 USDT, the PnL for the settled 0.01 position is calculated as follows:

Long PnL = (Exit price − Entry price) × Position quantity

= (152 − 150.10) × 0.01

= 1.90 × 0.01

= 0.019 USDT

Risk Disclaimer

No ownership of the underlying stock: Holding a TradFi Perpetual Contract does not represent ownership of the underlying stock or grant any shareholder rights, including but not limited to dividend entitlements, voting rights, or other shareholder privileges.
Corporate action risk: Stock splits and reverse stock splits may result in adjustments to contract parameters, positions, and orders, and may require partial position settlements. After trading resumes, affected positions may still face liquidation risk if your account does not maintain sufficient margin.
Margin risk: Please ensure that your account maintains sufficient margin at all times and closely monitor your margin level to reduce the risk of liquidation caused by market volatility.

Bybit reserves the right to adjust the processing timeline, adjustment methodology, and relevant contract parameters based on market conditions or corporate actions. In the event of any discrepancies or changes, please refer to the latest information published on Bybit's official website.