How do cfds and dividends work?

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In the case of  that have stocks as underlying, the situation is simpler. Obviously, the payment of dividends made by a company is made in a short period of time, usually the business days following the ex-dividend. On the other hand, if it is done through actions,  to  weeks will pass. In the event that a trader has an open position in which profits will be made if the share price rises, and this position is maintained until the day before the ex-dividend date, then if the right to receive a payment equivalent to the dividend. The investor must have a  position before the maximum ex-dividend time to receive his payment.

The date of an ex-dividend of an underlying stock with a long CFD position is a Wednesday, then it is necessary for the trader to open the position at least on Tuesday for the payment to be credited. If the positions are Fax Lists short, that is, profits are obtained if the price of the share falls with stock cfds, the situation changes since the investor is the one who owes the dividend, deducted directly from his trading account. Maintaining an open short position in shares through CFDs has the benefits that the trader obtains payment with interest based on the margin used in the operation that, in the case of a long position, must be paid.



If an open long position is maintained, the amount of the dividend is entered into the trader account. If it is a short position, the amount of the dividend will be reduced from the account. CFD dividend dates It is important to highlight some variables that should be kept in mind when investing with stock CFDs: Dividend included: This refers to the fact that a share is in the process of trading within the market, including the dividend, so buyers have the right to receive the equivalent of the dividend. Ex-dividend date: occurs when the market opens on the same day. In that case, the shares do not have the included.