CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
To qualify for a CFD dividend adjustment, you must open a position in the company’s instrument before the ex-dividend date and still hold it when that date begins. However, you don’t need to keep the position until the end of the ex-dividend date.
When are dividends paid?
CFD dividend adjustments are applied directly to your account on the ex-dividend date. Unlike traditional dividends, these adjustments are meant to compensate for the expected price drop in the instrument’s value when the dividend is paid.
How does the adjustment work?
- Long Positions: You receive a positive adjustment, meaning funds are added to your account.
- Short Positions: A negative adjustment applies, meaning funds are deducted from your account.
Will I receive dividends when trading Index Futures?
Can I receive a negative dividend?
Yes, if you have a Sell (short) position in a CFD account, the dividend amount will be deducted from your account instead of being credited. This adjustment reflects the impact of the dividend payout on the instrument’s price when the ex-dividend date arrives. For more details, click 👉 here.