When you own a stock the price of the underlying stock will fall on an ex-dividend date, and you will receive the dividend. When spread trading a stock, the price of the underlying stock will still fall on an ex-dividend date, but you will not receive the dividend as you do not own the stock. For this reason, we will offset the fall in stock price due to dividends on any Stocks you are trading with TD365.com.
All global Indices are a value that is calculated from the price of the major company stocks in that market. For example, the DE 30 is an index calculated from the stock price of the top 30 companies listed on the German Stock exchange. Therefore, Indices will also be affected when a company’s stock goes ex-dividend and we will adjust your account accordingly for any Indices you are trading.
Each week we publish the estimated price adjustment due to company dividends on each Index.