A dividend adjustment is made in share or index CFD positions when a dividend is paid. Long positions receive a credit, while short positions incur a debit, reflecting entitlement or responsibility for the dividend from the ex-dividend date.
How dividend adjustment works
| Position type | Dividend adjustment |
|---|---|
| Long position | The adjustment may be credited to the trading account. |
| Short position | The adjustment may be debited from the trading account. |
Key term
| Term | Meaning |
|---|---|
| Ex-dividend date | The date from which a stock no longer trades with the right to receive the upcoming dividend payment. |
Important notes
- Dividend adjustments may apply to share CFD and index CFD positions.
- Long and short positions are treated differently.
- Dividend adjustments may appear as balance adjustments in the trading account.