Pairs Trading on MT5

Dividend payments are applicable to most cash indices and will be applied as debit/credit along with the rollover to your open positions. Adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Index. The adjustment will appear as a debit or credit cash entry. When an equity goes ex-dividend, the price of that equity theoretically decreases by the dividend amount. In practice, this does not always happen as there are many market forces affecting an equity price. The amount of points an index cash CFD drops by is dependent on the weighting of the equity within the index. If more than one constituent equity of an index CFD goes ex-dividend on the same day, the amount of points each equity will theoretically cause the sector or index to drop by is added together to calculate the total amount of dividend points or “drop points”. Hantec Markets will either collect or pay dividends on the hedge positions that we have entered into against client issued CFDs. Where an index is a Total Return Index, dividend payments will not be credited/debited.

Further, pairs contracts are eligible for any corporate actions that take place on the underlying instruments. Corporate actions are applied to each of the instruments independently, meaning that you will see the corporate action reflected on your account in the same way as if you were holding the instruments separately.