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:
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).
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).
**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%.