What are CFD’s?

(CFD) or a “contract for difference” is a contract between the investor” the buyer” and the broker “the seller” on a specific CFD. We offer this product to our clients to choose from a wide variety of products including stocks, forex, indices, and commodities.When trading CFDs, the trader will make profits based on the price fluctuations of that asset between the time the contract opens and closes without having to buy that underlying asset.

CFD shares/indices corporate actions Dividend/Stock Split/Reverse Stock Split Corporate actions can have an indirect effect on the price at the time of the action’s position held open by CFD Shares/Indices. A dividend payout and/or stock split announcement can involve necessary changes depending on the outcome.

Carrying CFD Shares/Index positions open on the 'ex-dividend' day or the day of corporate activity, positions shall be subject to cash adjustment relating to the price difference of the CFD Share/Index directly when the CFD Share/Index retains exposure. Market Equity INC shall, by the required correction reflect dividends.

If a client holds a net long (buy) exposure, the dividend amount will be credited to him, and if a customer holds a net short (sell) exposure, Market Equity INC will deduct the dividend amount. "The Client shall be subject to the requested changes for both the number of lots opened and the price of the CFD share after the outcome of the "Stock Split."

Margin modification may occur accordingly. Usually, "reverse stock split" has the opposite effect on dividend distribution or "stock split"; thus it may be appropriate to make changes to keep "long" CFD shares positions open during "reverse stock split."