Dividend Schedule
When a constituent stock of a spot index CFDs pays a dividend, the index reflects this by distributing a corresponding dividend. As stock prices usually drop after dividend payouts, the index value may fall, benefiting short positions and negatively impacting long positions.
Dividends Adjustments for Cash Index CFDs
What are the Dividends Adjustments for Cash Index CFDs?
When the stocks comprising a spot index pay dividends, the index price typically drops due to the ex-dividend effect of its constituent stocks. This benefits short positions (as the index decline is advantageous for shorts) but negatively impacts long positions. To ensure fairness, trading platforms perform a 'dividend adjustment' for clients holding positions before the index goes ex-dividend :
For long position holders: they receive a dividend adjustment as compensation
For short position holders: they are required to pay a dividend adjustment fee
The adjustment amount will be credited to your account along with the overnight fees on the night before the ex-dividend date.
Example 1: Normal ex-dividend date
Assuming the NAS100 index has an ex-dividend date of 10/03/2022, with a dividend payout of $20 per lot. On 09/03/2022, at the end of the trading day, you hold 2 short positions in NAS100.
The regular overnight fees for the day are:
Long: -$25/lot
Short: $8/lot
Dividend Adjustment:
Long fees = -$25 + $20 = -$5/lot
Short fees = $8 - $20 = -$12/lot
You hold 2 short positions :
Total cost = 2 lots * (-$12/lot) = -$24
Your account will be charged a total of $24.
End of Trading Day
Dividend Adjustment
Total Cost SettlementExample 2: When the ex-dividend date is Monday
f the ex-dividend date falls on a Monday, the dividend adjustment will be applied on the previous Friday. Since 3 days of overnight fees will be charged on Friday, the dividend amount must be divided by 3 before applying it.
Assuming the NAS100 has an ex-dividend date of 2022-03-14 (Monday), with a dividend payout of $30 per lot. On 2022-03-11 (Friday), at the end of the trading day, you hold 1 long position in NAS100.
The regular overnight fees for the day are:
Long: -$25/lot
Short: $8/lot
Dividend Adjustment
The long position fee is equal to:
-$25 + (30 USD / 3) = -$25 + $10 = -$15/lot
The short position fee is equal to:
$8 - (30 USD / 3) = $8 - $10 = -$2/lot
Since you hold 1 long position and are charged 3 days of fees on Friday:
Total cost = 1 lot * (-$15/lot) * 3 days = -$45
Your account will be charged $45.
You can refer to the dividend schedule published on this page to learn about the dividend forecast for this week. Please note that the schedule is for reference only, and the information may change based on adjustments made by our liquidity providers and exchanges.
Specific information regarding overnight fees can be found on the Product Specifications page of this website.
