What are the upcoming dividends for FXCM's Index CFDs?
Dividends may impact the amount of “Rollover” you pay on your Index CFD position. Index CFDs are made up of a group of stocks that may pay dividends throughout the year. If you are long an Index CFD, you receive dividends. If you are short, you will pay dividends.
How do Dividends Impact my Trade?
Let’s provide an example.
You have a short position on 1 contract of SPX500 and hold that position past 5pm EST. That day, a dividend was issued of $0.07 and all short positions will pay $0.07 per contract short SPX500. How do I find rollover?
Please note that dividends are included in the Rollover amount. To learn more about how rollover is calculated, please click here.
How can I avoid paying dividends on Index CFDs?
To avoid paying dividends, you can close your position before 5PM EST and the charge would not apply.
How can I see when future dividends may impact my positions?
For each index below, the dividend will be displayed as ‘High’, ‘Medium’, or ‘Low’. For High dividend days, the rollover on short positions will be larger than usual.
Why display ranges and not the exact amounts?
FXCM purchases index dividend information in advance to determine the rollover amount displayed in the Trading Station Platform. This is proprietary information from a third party and cannot be released prior to the index issuing a dividend. However, to remain transparent, ‘High’, ‘Medium’, and ‘Low’ indications are used instead.
Where do these ranges come from?
The ranges are based on the past 12 months of dividend data.