So I've been using MT5 for the past couple of weeks. I opened a several demo accounts with a local brokerage and I was testing various positions. One of the demo accounts I setup just to test stock splits so I bought some TSLA at $2201. Yesterday the split went through and I woke up to find my position in the negative.
My position remained the same and I was owing almost $30K. I contacted my broker asking about why the position wasn't automatically adjusted and this is the response I got:
"Let me explain for you the process when stock split occurs. In real accounts, the positions are closed before the stock split. There are no adjustments in the positions.
Stock splits and contracts expiration are adjusted by closing the positions before the events."
So my question is, is this a normal scenario for stock splits?