Spread betting FTSE100 for dividends

anthonylr

Newbie
2 0
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

Legendary member
10,604 1,742
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

Newbie
2 0
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

Newbie
5 0
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?
 
 
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