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Dividend adjustment on Futures or just DFB contracts?

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Apologies if this is a silly question, but does IG make/pay dividend adjustments when you are holding a Futures contract?  I know they do with DFBs and I have searched the site with regards to Futures but am struggling to find anything that specifically references dividend adjustments on Futures contracts

There is a note on my Trade Analytics that says "Your average holder time on indices is 10 days.  It's usually cheaper to hold futures contracts after 3-6 days."  This makes sense as the initial cost (wider spread on the Futures) will be more than offset but the absence of any daily interest fees after a few days (or week).  However, the Dividend adjustments I receive are higher than the aggregate daily interest cost (albeit the Dividend adjustment is only paid periodically) which is why I am trying to confirm that I would still receive these Dividend Adjustments if I trade Futures rather than DFBs?

Can anyone confirm this, or point me towards where I can find it on the IG site (I have looked but I must not be looking in the right places).

Thanks in advance!

 

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Thanks for confirming that.

I might be missing something, but why would someone take a long-term position on an Index using Futures when the dividend adjustments more than cover the daily interest costs? 

Intuitively it should make sense to buy a Futures contract, but over the last three months my Dividend Adjustments have been more than my daily interest costs.  Have I just struck it lucky with timing (ie. holding contracts at the time that Dividends where paid) or have other traders also noticed this?

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8 minutes ago, Kiwi_Rob said:

Thanks for confirming that.

I might be missing something, but why would someone take a long-term position on an Index using Futures when the dividend adjustments more than cover the daily interest costs? 

Intuitively it should make sense to buy a Futures contract, but over the last three months my Dividend Adjustments have been more than my daily interest costs.  Have I just struck it lucky with timing (ie. holding contracts at the time that Dividends where paid) or have other traders also noticed this?

 

The only thing about DFB is you get charged daily interest whether you're long or short (it's a little hidden-away fee) and it can add up.

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Posted (edited)
12 minutes ago, dmedin said:

 

The only thing about DFB is you get charged daily interest whether you're long or short (it's a little hidden-away fee) and it can add up.

For longs you pay the daily interest fee but often for shorts you receive it, minus the admin fee. For longs you are borrowing money to buy the contracts, for shorts you are borrowing the contracts to sell for money. Stretching my memory here so don't mind if I get contradicted but I think shorts go negative (same as longs) if there is backwardation in the futures market.  

Edited by Caseynotes
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