A dividend adjustment, or 'Div-Adj,' is the amount credited (for Buy positions) or debited (for Sell positions) to account for dividend payouts on underlying assets like stocks, CFDs, and indices.
When companies pay dividends, it impacts the value of their shares and, consequently, the value of derivatives tied to those shares.
We will make adjustments to those accounts with a position in an affected derivative if that position is open at 00:00 EET time on the day prior to the ex-dividend date of the constituent shares.
Moreover, we will credit long positions and debit short positions (by means of a cash adjustment) as follows:
- Dividend value x Position size (lots) x Contract size and convert it to the currency rate of the client account.
It’s important to consider the country where the client's account was opened, as well as any potential currency conversion fees.
Further information on the dividend adjustment value for Stocks can be found at the official source of a particular stock.
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