How do dividends impact Indices’ daily swap rates?
A dividend is scheduled to be credited/deducted to the holders of Cash Indices CFD depending on the direction of your open position(s). If you buy and hold a cash index overnight, into the ex-dividend date, you will receive the dividend component. If you sell and hold a cash index overnight, into the ex-dividend date, you will be charged the dividend component. This adjustment is included into the end of day swap rate..
Examples of Index dividend adjustments
- 1If you buy and hold 1 lot DJ30 cash index overnight with the dividend component of +20 USD, the account will be credit with 20 USD.
- 2Conversely, if you sell and hold 1 lot SPI200 cash index overnight with the dividend component of -20 AUD, the account will be debit with 20 AUD.