xStocks and traditional stocks both give you economic exposure to the price of a company's share, but they work differently in a few important ways.
How corporate events are handled
Traditional stocks handle corporate events like splits, reverse splits, and dividends automatically through your broker. When you hold a position in xStocks on Bitso, your xStocks can be adjusted to reflect certain corporate events that affect the underlying shares.
These adjustments are designed to keep your economic exposure aligned with the reference asset. During a corporate event, you may temporarily see a notice in the app while your balance and average price update. Your funds stay safe throughout this process.
Trading hours
Traditional stocks follow the trading hours of their stock exchange. xStocks can trade outside the usual hours of the traditional market. However, when a corporate event happens, such as a dividend or a split, trading pauses for a few hours so prices can accurately reflect the underlying asset.
Fractional shares
With most traditional brokers, you need to buy at least one full share. With xStocks, you can invest any amount, even less than the price of a single share.
| Aspect | Traditional stocks | xStocks |
|---|---|---|
| Corporate events | Handled automatically by your broker | Your position may be adjusted to reflect the event |
| Trading hours | Limited to stock exchange hours | Can trade outside exchange hours, with pauses during corporate events |
| Minimum investment | At least one full share | Any amount, including a fraction of a share's price |