In CFD trading, a dividend adjustment occurs when a stock or index in your open position pays a dividend. Since CFDs do not grant actual ownership of the underlying asset, traders do not receive dividends directly. Instead, a cash adjustment is automatically made to your trading account balance.

How Dividend Adjustments Apply to Your Positions:

• Long (Buy) Positions: Receive a positive adjustment, reflecting the dividend payout credited to your account.

• Short (Sell) Positions: Incur a negative adjustment, as they must cover the dividend value deducted from your account.

Market Purpose: This adjustment ensures fairness and maintains price consistency in CFD trading, neutralizing the physical price drop that naturally occurs in the underlying stock index on its ex-dividend date.