Limit orders: Sequence of actions and peculiarities in the event of corporate actions
Expiration of limit orders and conduct in the event of corporate actions
When a limit order reaches its validity date, wikifolio traders receive an email on the last day of validity notifying them that the order expires at the close of trading, as is also the case with stop-limit orders.
In the event of corporate actions (e.g., dividends and stock splits), orders placed on the respective security are deleted. Corporate actions often lead to an abrupt price change of a security and can thus lead to unwanted order executions.
To protect against these unwanted executions, limit and stop limit orders are deleted prior to execution. The trader of the concerned wikifolio is informed by email in that case.