If a dividend payment occurs, it will generally be reflected in the index CFD price.

If you hold an open position when you adjust the dividend, OANDA will credit or debit your account the same amount that affects your unrealized profit and loss, so as to ensure that your account will not be materially affected.

Here are some examples:

Long position (long position):

Assume that the trading price of the UK FTSE 100 Index is £7167.95.

If you are long 20 units of the FTSE 100 index, and one component of the index pays a dividend equivalent to 5 index points.

The index value will fall to 7162.95 pounds.

The dividend adjustment will

= Index dividend point value X number of index CFD units held
= 5 X 20 = 100 GBP

This amount will be credited to your account after conversion into domestic currency.

Short position (short position):

Assume that the trading price of the US Standard & Poor’s 500 Index is $2,989.69.

If you short 10 units, and a constituent stock in the index pays a dividend equivalent to 0.890 index points.

The dividend adjustment will

= Index dividend point value X number of index CFD units held
= 0.890 X 10 = 8.90 USD

This amount will be debited to your account after conversion into local currency.

You can view OANDA’s dividend adjustment information on your transaction history and statement.

Go to OANDA’s Official Website