What is a dividend adjustment?

A dividend adjustment is applied to a Share CFD or Index CFD position in the event of a dividend payment occurring in the underlying market. The ex-dividend date is the day a share starts trading without its dividend payment.

A dividend is scheduled to be credited/deducted to the holders of Share CFD or Cash Index CFD depending on the direction of the open position(s). If you buy and hold the position overnight, into the ex-dividend date, you will receive the dividend component.

If you sell and hold the position overnight, into the ex-dividend date, you will be charged the dividend component. In the case of Cash Index CFDs, the dividend adjustment is included into the end of day swap rate.