1. What Are Dividends and Ex-Dividend Dates?
• Dividends: Payments distributed by publicly traded companies from profits or retained earnings. When stocks pay dividends, related index CFDs undergo dividend adjustments.
• Ex-Dividend Date: Set by the index provider based on constituent stock ex-dividend dates, marking when dividends are paid.
2. Dividend Adjustment
Dividend adjustments for index CFDs are reflected in your MT4/5 account between 05:00-06:00 (GMT+3) on the ex-dividend date, labeled as "Dividend".
3. Impact of Dividends on Index CFD Trading
Long Positions (Buy): Dividend adjustments are credited to your MT4/5 account.
Short Positions (Sell): Dividend adjustments are deducted from your MT4/5 account.
4. Dividend Adjustment Calculation
Long Position Formula:
Lots × Contract Size × Long Dividend Amount (in index currency)
Short Position Formula:
Lots × Contract Size × Short Dividend Amount (in index currency)
5. Calculation Example
For SPXUSD, assuming:
Ex-dividend date: October 11, 2024
Long dividend amount: 0.050 USD
Short dividend amount: -0.050 USD
• If you hold 1 standard lot of SPXUSD long position at the close on October 10, the adjustment is:
1 × 100 × 0.050 = 5 USD
At 05:00-06:00 (GMT+3) on the ex-dividend date, 5 USD will be credited (for long) or deducted (for short) in your MT4/5 account, labeled as "Dividend".
6. Important Notes
Dividend adjustments apply only to index and stock CFDs and affect account balance based on position type. Dividend amounts and impact vary by index and market conditions.
For more details, please contact your desingated consultant or visit our official website.