An index (like S&P 500, DAX, NASDAQ) is made up of many stocks. Some of those stocks pay dividends.
Since a Derivative is just a contract (not ownership), brokers handle dividends via cash adjustments (typically applied on the ex-dividend date of the underlying company).
To account for this:
- If you hold a long (buy) Index CFD position, you may receive a dividend adjustment.
- If you hold a short (sell) Index CFD position, you may be charged a dividend adjustment.
How are dividend adjustments calculated?
The adjustment is based on several factors, including:
- The dividend declared by the underlying company.
- The company’s weighting within the index.
- The size of your open position.
The information here is provided as indicative and may change at
