Jump to content

IG Community Blog

  • entries
    204
  • comments
    159
  • views
    83,189

Contributors to this blog

Dividend Adjustments 1st March - 8th March 2021


MaxIG

2,094 views

Expected index adjustments 

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 1st March 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

image.png

NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
cash neutral adjustment on your account.

 

Special Dividends

       

Index

Bloomberg Code

Effective Date

Summary

Dividend Amount

UKX

RIO LN

04/03/2021

Special Div

66.7

AS51

IFL AU

03/03/2021

Special Div

50

AS51

RIO AU

04/03/2021

Special Div

170.9

SX5E

KNEBV FH

03/03/2021

Special Div

50

FBMKLCI

PTG MK

09/03/2021

Special Div

50

       

How do dividend adjustments work? 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

5 Comments


Recommended Comments

Why are some divs highlighted in Red?

Will a point and cash adjustment still be made for those ones?

Link to comment

This afternoon the Australia 200 CFD was adjusted down for dividends as shown above. The problem I have with this is that, whereas our cash account is adjusted to compensate for this, our stops are not adjusted so I was triggered out of a trade thereby losing my risk margin. The real market made no such move and, in fact, rose to the level I had set minutes earlier to get out of the trade for breakeven.

So I lost money on the trade only because of the adjustment made by IG. I checked FXCM and OANDA platforms to confirm that they had made no such adjustment, and the cash market did not reflect this adjustment either.

Really, if these arbitrary index adjustments are to be made, stops should automatically be adjusted by the system also. Further, if we have open positions in any index that is about to be adjusted, we should be sent a notice at least 24 hours before the adjustment so we can decide to exit our positions as we do not know how much the error will be.

I believe that we should be compensated for losses on such trades as the stop was not really hit. Further, the new arbitrary price level of the index going forward no longer relates to the real-world price on the exchange, and the support and resistance levels form the historic prices on the charts become meaningless. This is all very confusing and I am unclear as to how IG expects us to deal with these factors.

I would welcome some comments on this as I am unsure how to move forward in such an environment.

 

 

Link to comment

The stop was hit. You were paid the adjustment. 

It literally does this every adjustment on every market. Either adjust your stop accordingly to take it into effect or get over it. You can't have the best of both. You can always re-enter a trade. 

The dividend adjustments are listed on this blog every week. Book the page, check it and you won't get caught out again.

 

Link to comment
On 01/03/2021 at 00:33, Guest Lok said:

Why are some divs highlighted in Red?

Will a point and cash adjustment still be made for those ones?

If they're highlighted in red it's because they're special dividends :) 

Link to comment
On 03/03/2021 at 20:29, Guest Mark said:

The stop was hit. You were paid the adjustment. 

It literally does this every adjustment on every market. Either adjust your stop accordingly to take it into effect or get over it. You can't have the best of both. You can always re-enter a trade. 

The dividend adjustments are listed on this blog every week. Book the page, check it and you won't get caught out again.

 

Thanks Mark.

Unfortunately you have misunderstood  my point and my concern as well as the true repurcussions.

Don't worry. You will eventually get it.

cheers. 

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...