A Contract for Difference (CFD) is a derivative instrument, underlying assets (stocks, indices) of which are traded on stock exchanges.
When trading CFDs on a company's shares, a client does not acquire the ownership or management rights of that company.

However, the payment of dividends by the issuing company of the respective share is considered in the so-called Dividend Adjustment. This adjustment is calculated on the ex-dividend date for all clients who have open positions in CFDs on shares and ETFs.

Dividend adjustment is calculated based on the dividend data published by the issuing company.
A positive adjustment is calculated for an open Buy position, and a negative one for a Sell position, respectively.

An example of dividend accrual
Let's suppose that Microsoft Corporation (MSFT) pays $1.05 in dividend per share.
You bought a CFD on an MSFT share and on the ex-dividend date you have an open position in the market.
Having opened a Buy order with a volume of 10 lots, you buy 10 contracts.

Dividend adjustment = Dividend amount per share x Volume of an open position in lots x Contract size.

Accordingly, the amount of the dividend adjustment in monetary terms will be:
$1.05 x 10 lot x 1contract size = $10.50.

An example of dividend deduction
The amount of the dividend adjustment for a Buy order in monetary terms will be:
$1.05 x 10 lot x 1contract size = $10.50.

Accordingly, for a Sell order:
- $1.05 x 10 lot x 1contract size = - $10.50.

* Contract size corresponds to Trading Conditions.

** ForexEE is required by the national law of the country of the issuing company or Regulator to withhold taxes on dividend adjustments. In such cases, the dividend adjustment for the open long position will be credited to the trading account after charging the tax and commission.
When a dividend adjustment is debited from a trading account, the tax is not withheld.