Cash Index CFD Dividend Example | CGSI CFD

Cash Index CFD Dividend Example

If any constituent of underlying index has declared a dividend and account is holding Cash Index CFD position for ex-date -1, then account will receive or pay dividend amount. Long position receives dividend and Short position pays dividend. CGSI receives dividends in terms of Index points from liquidity provider and applies directly to applicable positions.

Index Dividend Example

Index CFD: US30.IXC

If constituents for Index Dow Jones announced dividends ex date 30-Aug-16.

Total Dividend in terms of Index Point = 15.272

If Position held overnight as of close 29-Aug-16: Long 20

Index Dividend receive = Quantity * Index points = 20 * 15.272 = USD 305.44

If Position held overnight as of close 29-Aug-16: Short 20

Index Dividend pay = Quantity * Index points = -20 * 15.272 = USD 305.44

Please note that different data provider such as Bloomberg, Markit etc may have minor differences in terms of Index points. CGSI applied Index points as provided by our liquidator provider which may have minor deviation if compared to different data provider