1

Categories

October 30, 2017

Question:What is Dividend Adjustment? How it is calculated and when?

iFOREX - What's now?

We are no longer promoting iFOREX. The information regarding to iFOREX on the website 'Hercules.Finance' maybe outdated. ref. iFOREX

Answer:

In the event of a distribution of cash dividends in relation to a share CFD, a dividend adjustment will be made to the Client’s Balance with respect the underlying share’s positions held by the Client at the end of business day which precedes the ex-dividend date.

The dividend adjustment shall be calculated based on the size of the dividend, the size of the Client’s position and whether it is a buy or a sell transaction, whereby in long positions the adjustment shall be credited to the Client’s Balance and in short positions the adjustment shall be debited from the Client’s Balance.

Dividends shall be credited or debited from the Client’s Balance outside the underlying share’s trading hours and before the opening of the share’s next trading day, and are contingent upon the Client holding its respective position at the time of the dividend adjustment.

During this period, in order to keep the fair value of the Client’s Equity until the opening of the next trading day, the Company shall adjust the Client’s position in accordance with the dividend amount debited or credited from the Client’s Balance.

Example of “Dividend Adjustment”

Coca-Cola issues a dividend of 0.35 USD per share.

The Ex-Dividend date is November 29th and the settlement date in iFOREX is November 28th at 22:05 GMT.

The closing price before the settlement is 41.65.

A client that holds a Long positon of 5000 shares will be credited with 0.35 x 5000 = 1750 USD if his deal is open at the settlement date.

Similar amount will be charged from the balance of a client that holds a Short position.

The share price will be adjusted during the afterhours from 41.65 to 41.30 which equals to the last share price minus the dividend amount.

All Forex Brokers

  • IFC Markets
  • FxPro
  • IronFX
  • Axiory
  • FBS
  • Land-FX
  • MyFX Markets
  • Titan FX
  • Traders Trust
  • XM
  • LMFX
  • FXDD
  • ForexClub
  • KVB Kunlun
  • Tradeview
  • EightCap
  • FXOpen
  • HotForex
  • FXGiants
  • LQDFX
  • Fortrade
  • CM Trading
  • InstaForex
  • FXPRIMUS
  • ForexMart
  • Valutrades
  • AvaTrade
  • Yadix
  • RFXT
  • easyMarkets
  • JustForex
  • Swiss Markets
  • FXTM
  • HYCM
  • FP Markets
  • SimpleFX
  • IC Markets
  • Evolve Markets
  • Tickmill
  • Markets.com
  • Z.com Trade
  • UFX
  • Anzo Capital
  • LiteForex
  • 4xCube
  • OctaFX
  • Tifia
  • XTB
  • AAAFx
  • NordFX
  • FXGlory
  • Capex
  • ClickTrades
  • TopstepFX
  • HotForex ZA (South Africa)
  • XMTrading

All Crypto-Currency Exchanges

  • CEX.IO
  • HitBTC
  • Paxful
  • BitMEX
  • C-CEX
  • Binance
  • Cryptopia
  • YObit
  • Wisebitcoin
  • Bibox
  • BKEX
  • CoinPark
  • CoinEx
  • IRONX
  • CoinField
  • bybit
  • Bitpanda

This website uses cookies

By using our site, you acknowledge that you have read and understand our Privacy Policy (Cookie Policy), and our Terms of Service.