Dividend adjustment

[andyintenerife2020]

I often get charged £2 or less for dividend adjustment, I've just been charged £58:98 crikey I only made £148

Didn't expect that

How do you all hold indexes?

 

[BigDeal]

You should be aware in advance of dividend adjustments. Most major brokers publicise them I think. Theoretically it shouldnt really have an affect on P&L anyway. The other way round it is to trade futures where divi adjustments do not apply.

 

[andyintenerife2020]

The platform I'm using states dividend adjustment only happens if it's greater than 2% of the notional value, I've emailed them as I thought the notional value was the leveraged amount, there's no way the div is 2% of leverage.

Ive placed 2 future trads today so I can see if there are any costs related, the small print says there isn't.

£58 has a massive affect on p&l I need to get this sorted asap

 

[BigDeal]

But when you're holding a short position you will gain by the amount of the dividend adjustment so at the time of the adjustment there is no difference to P&L

 

[andyintenerife2020]

It was a short

 

[andyintenerife2020]

Some of the spreads are huge on futures
Ftse100 20point spread

 

[BigDeal]

It was a short

Yes so in that case you gain from the drop in the index value, which offsets the dividend you have to pay

Some of the spreads are huge on futures
Ftse100 20point spread

Most providers are nowhere near this. Were you looking outside of exchange opening hours?

 

[andyintenerife2020]

Here, just now it's 21

 

[BigDeal]

Aha, yes that's a forex forward quote, different to an index future.

 

[andyintenerife2020]

I have a lot to learn, in the past I bought shares and held them or physically changed currency because my bank allowed me to hold it.
Now I've retired, I'm just having a play around with it, started in August with 5k and made 560 and September I've just done 1k net profit this month "though today was a good day" did 144 this morning

 

[BigDeal]

I have a lot to learn

Yes, and you will continue to learn. I've seen some of your other posts / threads and agree with many of your comments re historical charts, indicators etc. There are many who will disagree with me (and you) about that, but I believe more in fundamentals and what will sway the market via all types of news.

Your results seem pretty good to date, whether this is down to good fortune or a well defined strategy? Perhaps gut feel is as good an approach as any other! Having said that, a little knowledge is a dangerous thing, and you need to fully understand the type of instrument your are trading, and the factors which affect it. I'm of the opinion individuals should trade a very narrow range of instruments, and one of my favourite phrases is 'know what you trade, and trade what you know'. Be a specialist.