When you trade on stocks or indices with us and there is a dividend payable on the underlying asset, one of the 2 scenarios below may happen:

1. Any long positions held on the applicable stock and/or spot index at the ex-div* date will receive a dividend (minus the withholding tax**) in the form of a cash adjustment (deposit, paid into your Trading Account).

2. Any short positions held on the applicable stock and/or spot index at the ex-div date will be charged the dividend amount in the form of a cash adjustment (withdrawal, deducted from your Trading Account).

*ex-div date describes a stock that is trading without the value of the next dividend payment. The ex-dividend date or “ex-date” is the day the stock starts trading without the value of its next dividend payment. Typically, the ex-dividend date for a stock is one business day before the record date, meaning that an investor who buys the stock on its ex-dividend date or later will not be eligible to receive the declared dividend. Rather, the dividend payment is made to whoever owned the stock the day before the ex-dividend date.

**Withholding tax is a levy deducted from dividends in most underlying markets. The deduction varies depending on the underlying market, but it’s often reduced to 15%.