Question: What is dividend adjustment of Cash Index CFDs? How and when that happen?
Almost all CFD Cash Indices are subject to dividend adjustments.
When is the Dividend Adjustment?
The dividend adjustment is made every day or few days, depending on the instruments.
The adjustment will be charged/received at 00:00 in server time GMT+2(GMT+3 in DST, summer time) on the ex-Dividend Date.
*The ex-Dividend Date should be notified by brokers.
How it is calculated?
Dividend adjustments are not made on CFD Futures indices, but only CFD Cash indices.
Normally long positions will receive the adjustment, and short positions will be charged as follows:
Dividend Adjustment = Index Dividend declared(by brokers) × Lot size
You may need to contact your broker to find out how they are taking care of the adjustment in each trading account.
