FAQ

When a company within a stock index pays out a dividend, it impacts the overall value of the index, causing it to drop by a certain amount.

To keep your trading fair and uninterrupted, we apply a dividend adjustment to your account:

• If you have a long position (buy), your account is credited.

• If you have a short position (sell), your account is debited.

The adjustment reflects the additional running profit or loss caused by the dividend impact.

Dividends represent the portion of a company's profit paid out to shareholders, and this is determined by the board of directors of a company. They are usually given as a monetary amount per share or as a percentage of the share price, known as the dividend yield.

If you're trading stock CFDs, you don’t own the actual shares, but your positions can still be impacted by corporate actions like dividends.

In these cases, dividend adjustments are applied to CFD positions to account for the price movement that typically occurs on the ex-dividend date.

• Long positions receive a positive adjustment credited to the account.

• Short positions receive a negative adjustment debited from the account.

These adjustments are not dividends in the traditional sense, but they help ensure your trading account reflects the impact of the corporate action.

When a company announces a dividend, there are specific dates that determine who is eligible to receive it. The ex-dividend date is the day the stock starts trading without the value of the upcoming dividend.

If an investor owns shares before the ex-dividend date, they are entitled to receive the dividend.

For long positions in stock CFDs, the dividend payment may be reduced based on the applicable withholding tax rate.

Important Note: During periods of high market volatility, especially around earnings announcements or corporate actions, leverage may be reduced to 1:5 to help protect you from increased exposure.