Please be informed that as of the 18th of March, 2019, Alpariwill start applying dividend adjustments when positions on index CFDs remain open on the ex-dividend date.
Please note that the ex-dividend date of a share refers to the timing of payment of dividends on that specific share. Since a stock index is comprised of many shares, each time one of the shares it includes has an ex-dividend date, so does the index itself.
As such, when a client has an open position on an index CFD on the ex-dividend date, they will be charged or paid the dividend amount.
More specifically, if a client has a buy position, their account will be credited with the fixed dividend amount, while if a client has a sell position, the dividend amount will be debited from their account.
The formula for calculating dividend adjustments is as follows:
Dividend amount (USD) * Contract size * Volume in lots (of the index)
Adjustments will be made according to the net volume of open positions on CFDs at the end of each day.
Also note that according to clause 16.1, subclause (b) of the Client Agreement - "The Client acknowledges that the Company shall have the right to amend the value of dividends as specified in the Contract Specifications without prior notification to the Client."
Moreover, please note that the dividend amount is not determined at Alpari's sole discretion as it also depends on the dividend charges of our liquidity providers.
As a result, dividend amounts are provisional and may be subject to change depending on any adjustments made by our liquidity providers.
If you have any questions, please don’t hesitate to contact one of our specialists via our online chat service, through Viber, on Skype (calls only), by email at email@example.com, or by telephone on +44 8449 869559.