I was wondering if someone could help me with understanding exactly what my SB company IG index do to my account if I hold an open position to sell on the day a stock goes ex-dividend and why they do it.
The IG index web site states they debit my account the value of the dividend payment on the shares I control. I don't understand why this is. Why not simply adjust the open position at market open to reflect the loss of capital through dividend payouts whithout actually paying me the money for each pip lost. This way IG index don't owe me any money for the obvious drop in price that occurs when dividends are paid.
Why do I have to pay them money? The stock price hasn't risen and ive recieved no divdidend payout.
The IG index web site states they debit my account the value of the dividend payment on the shares I control. I don't understand why this is. Why not simply adjust the open position at market open to reflect the loss of capital through dividend payouts whithout actually paying me the money for each pip lost. This way IG index don't owe me any money for the obvious drop in price that occurs when dividends are paid.
Why do I have to pay them money? The stock price hasn't risen and ive recieved no divdidend payout.
