Dividends on CFD on shares

Contracts for difference (CFD) holders unlike holders of corporation stocks do not receive dividends as such. In the process of trading "Dividend Adjustment" is taken into consideration. A dividend adjustment is applied if any of positions are opened at the record date - ex-dividend date. In the case of a long position (“bought”) – the dividend adjustment is added to the client's account. In the case a short position (“sold”) – the dividend adjustment is debited from the client's account.

Example:

On 14 September 2007 (Declared Date) the executive board of the Alcoa Inc (AA) company declares a regular quarterly dividend distribution in the amount of $ 0.17 / per share;

Ex-Date - 31.10.2007,
Record Date - 2.11.2007,
Pay Date - 25.11.2007.

If on 31 October, before opening, the long position in 1 lot (100 shares) amount is opened
will be added: 100 х 0.17=17$; into the CDF holder account.
If on 31 October, before opening, the short position in 1 lot (100 shares) amount is opened, $ 17 will be debiting.
Crediting/ debiting will be carried out on 31 October.

The dates of dividend distributions on the companies, whose shares are the basic assets for CDF, can be seen in the table: