What are dividends and how do they affect my trading?

Dividends are profits made by companies and distributed to shareholders. When companies pay dividends, they are essentially reducing the value of the company by the dividend amount. This is then reflected on the ex-dividend date as a decrease in share price.

When it comes to indices, this is also reflected by a reduction in the overall index value, in proportion with the weight of the stock within said index.

Dividend adjustments apply to CFDs on Cash Indices and Stocks. They don’t apply to CFDs on Futures Indices or Germany40 (GER40Cash).

To ensure your trading won’t be affected, we make dividends adjustments on applicable instruments at 00:00 (GMT+2) (DST may apply) on the ex-dividend date.

Whether you hold a buy or sell position, the dividend can be calculated using the formula Index Dividend Declared x Position Size in Lots.