Spread betting FTSE100 for dividends

[anthonylr]

If I buy the FTSE100 on a spread betting site with the knowledge that a dividend is to be paid (Tuesdays for FTSE) and than close the position immediately the dividend payment is credited to my account will I incur additional charges. I do understand Dividend stripping but just curious...

 

[barjon]

No, but you'll only have 80% of the dividend credited to your account, whilst the ftse price will be reduced by the 100% amount.

 

[anthonylr]

Thanks for that. They must pay dividend and amend ftse price at the same time.

I'm guessing if they didn't do it that way there is a lot of money to be made - the whole transaction (buy and sell with dividend grab) could be done within 3 or 4 minutes...

 

[vvidiu]

Thanks for that. They must pay dividend and amend ftse price at the same time.

I'm guessing if they didn't do it that way there is a lot of money to be made - the whole transaction (buy and sell with dividend grab) could be done within 3 or 4 minutes...

can you explain how this works? i got IG, can you do it on that? hold it overnight or something?