IG replaced my CFD shares with new price

[NarayananIG]

I brought CFD shares at Vestas wind systems in a sell mode. The opening price was 1328 something and next day the price of one share dropped to 278 approx due to stock split. So according to leveraged CFD product, I should be paid difference in price. But IG broker closed my position and opened new position at new price. This might happen for underlying shares but why its happening to CFD when I am leveraging it and dont own underlying asset? Also, price difference is between buyer and seller right? 

[NarayananIG]

@CharlotteIGCan you help me? in CFD we see only price difference based on chart right? no underlying shares are owned? can you help me ? 

[NarayananIG]

How can IG close and open new position without my consent for CFD? if new share certificates were issued then it affects non leveraged shares... logically it should have no effect on CFD which is speculation only based on price. 

[HeOfMuchDisgrunt]

A CFD simulates the underlying, otherwise no-one would take the other side of your trade. Did you honestly think going short on a 10-1 stock-split the day before would make you (and lose someone else) 90% of the pre-split price the next day?

[CharlotteIG]

On 27/04/2021 at 08:39, NarayananIG said:

@CharlotteIGCan you help me? in CFD we see only price difference based on chart right? no underlying shares are owned? can you help me ? 

If there's a stock split we will mimic what's going on in the underlying as it's fair practice.

It's the same fair practice we use when there are dividend adjustments when the price moves down because a div has been paid out there will be an adjustment on leveraged clients accounts. 

All the best