Index Dividends Adjustments 12 - 18 Jan

ETX Capital, Monday, 11 January 2021

Index Div Adj - MAIN
Market 12 Jan
13 Jan
14 Jan
15 Jan
18 Jan
(16:30 GMT)
(16:30 GMT)
(16:30 GMT)
       1.8   0.3
(05:00 GMT)

Hong Kong 50
(08:00 GMT)
Spain 35
(16:30 GMT)
Italy 40
(16:30 GMT)
  135     94  
(06:00 GMT)
(20:00 GMT)
(20:00 GMT)
0.07 0.44 0.06  0.14*  
(20:00 GMT)

*Please note dividends for Ex Divi date 19th January will be applied on 15th January due to the US trading Holiday on 18th January*

*Remember the table above now reflects the actual date and time we adjust our price for the dividends and NOT the official EX Divi date*

All dividend adjustments are forecasts and therefore speculative and subject to our customer terms and conditions. Figures and adjustment dates can be affected by public holidays.

What Are Index Dividend Adjustments?
Companies often pay out dividends to their shareholders, it’s a scheduled event that can take place several months after they are declared. Generally, the price of a stock is reduced by the dividend amount once the stock goes ex-div. Indices are made up of multiple equities and so the index value will reduce if individual share prices fall due to dividend payments. To mitigate the effect of dividend payments, ETX capital apply a dividend adjustment to positions held through the ex-div date. These adjustments make sure there are no losses or gains through the dividend process. 

For example, if there is a dividend due in the UK 100 which takes off 11 points from the index, a short position of £1 a point held through 16:30 on the dividend adjustment date would see their P/L increase by £11 but see a debit of £11. A long position would see their P/L reduce by £11 but receive a credit of £11.

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