A stock index is a good indicative measure of the market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone. Online CFD and futures based indices are offered on both Interactive Trading Platform Platforms
Let us assume that the ex-dividend date for Index AUS200 is on the 18th of August 2016. Therefore, a client must have an open position for Index AUS200 before the 18th of August 2016 and it must remain open until the 18th of August 2016 in order to have the dividend adjustment of $2.44 per lot. To determine whether the dividend adjustment has been added to, or been deducted from the client’s account, we will need to know whether it has been a SELL or BUY on AUS200. The amount of $2.44 per lot will be converted to the client’s base currency before being added or deducted.
Risk Warning: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading Derivatives. You should consider whether you understand how Derivatives work and whether you can afford to take the high risk of losing your money. Please read our full Risk Disclosure.
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