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Stock Basket Rebalancing

Stock Baskets may need to be rebalanced when any components of the basket have certain corporate actions such as but not limited to delisting’s, stock splits and spinoffs.

Additionally due to internal liquidity or pricing considerations or if a component has dropped 90% from the inception rate, FXCM may choose to remove the component and rebalance the Basket.

  • The Basket will be set to “close only” shortly prior to the date of the rebalance
  • Clients can manage their existing open positions, but cannot add new exposure.
  • All positions and pending orders will be liquidated/removed prior to market close on the date FXCM designate.
  • FXCM aim to reopen the market for trading after the rebalance and/or when market condition allows.
  • In some cases FXCM may choose to switch a component 1-1 for another product, in this case pricing will not be halted and positions will not be liquidated. However all open position holders will be notified, and given the opportunity to close their position prior to the component change.