What does dividend adjustment mean?
A dividend adjustment is made when a dividend payment occurs for the underlying share or index constituent in a share or index CFD position.
The ex-dividend date is the date from which a stock no longer trades with the right to the upcoming dividend payment.
- For long positions, the dividend adjustment is credited to the trading account as the holder of the long position is entitled to the dividend.
- For short positions, the dividend adjustment is debited from the trading account, as the holder of the short position is responsible for paying the dividend.