Understand the dividend adjustment and allocation mechanism in your stock and index CFDs trading.
Dividends are funds regularly distributed to shareholders from publicly listed companies' profits or retained earnings. When stocks pay dividends, related stock and index CFDs products also undergo corresponding dividend adjustments.
The ex-dividend date for index CFDs is set by the index provider based on when the underlying stocks go ex-dividend. If you hold a long position, you’ll receive dividends; if you’re short, you’ll need to pay them. Knowing these dates in advance can help you manage your yields effectively.
The dividend data for related products in CFDs trading is displayed separately for long (buy) and short (sell) dividends.
Dividends are funds regularly distributed to shareholders from the profits or retained earnings of publicly listed companies. When stocks pay dividends, related stock and index CFDs products will also undergo corresponding dividend adjustments.
The ex-dividend date for index CFDs is set by the index provider based on the ex-dividend dates of the component stocks, which is also the dividend payment date.
Dividend adjustments for index CFDs typically reflect in your MT4/MT5 trading account between 05:00 and 06:00 (GMT+3) on the ex-dividend date, labeled as 'Dividend.'
Holding a long position (buy): Dividend adjustments will be credited to your MT4/MT5 account.
Holding a short position (sell): Dividend adjustments will be deducted from your MT4/MT5 account.
Long position (buy) calculation formula: Lots × Contract Size × Long Dividend Amount (calculated in index currency).
Short position (sell) calculation formula: Lots × Contract Size × Short Dividend Amount (calculated in index currency).
For example, with SPXUSD, assuming the ex-dividend date is 11 October 2024, the long dividend amount is 0.050 USD, and the short dividend amount is -0.050 USD. If you hold a long position (buy) of 1 standard lot of SPXUSD at the close on the day before the ex-dividend date (10 October 2024), the calculation for the dividend adjustment is as follows:
Dividend adjustment = 1 (standard lot) × 100 (contract size) × 0.050 USD (long dividend amount) = 5 USD.
On the ex-dividend date, between 05:00 and 06:00 (GMT+3), 5 USD will be credited to your MT4/MT5 account, noted as 'Dividend.'
If you hold a short position (sell), 5 USD will be deducted from your MT4/MT5 account, noted as 'Dividend.'
Dividend adjustments apply only to index and stock CFDs trading and will adjust the account balance based on the position type (long or short). The dividend amounts and their impacts may vary depending on specific indices and market conditions. For any inquiries, please contact your account manager or visit our official website for more information.
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