DIVIDEND ADJUSTMENTS
CFD traders qualify for dividend payments (if they are paid) The holder of a long position receives dividends as a credit cash adjustment into his account. The holder of a short position pays dividends as a debit cash adjustment into his account. A position has to be left overnight on the day preceding the dividend ex-date in order to be subject to dividend adjustments.
For Example: (Assume Goldman Sachs pays a quarterly dividend of $0.35)
Long CFD position Assume you are have a long position of Goldman-Sachs (GS) until the end of the trading session of the day preceding ex-dividend date for GS. You will receive the dividend of $0.35/share into your account. If you purchased 1,000 shares, you will receive $350 as a cash adjustment into your account at the end of the ex-date
Short CFD position
Assume you have a short position of Goldman-Sachs (GS) until the end of the trading session of the day preceding ex-dividend date for GS. You will pay the dividend of $0.35/share from your account. If you sold 1,000 shares, you will pay $350 as a debit cash adjustment from your account at the end of the ex-date.
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