It's Time To Play The Music, It's Time To Light The Lights

[Sledgehead]

Fancy a laugh? Try:

http://www.fillyaboots.com/ -> forums/spreadbetting/ex-dividend:

"I thought this deserved it's own thread...

I'm trying out a new theory which worked a treat on 11th May (£1200 virtual profit on Antofagasta) but failed miserably on 18th May...

Find a company which is due to go ex-div next Wednesday (they're always on Wednesdays I believe)

The dividend needs to be larger than the spread of the bet as the price typically falls by (roughly) the amount of the dividend.

On Tuesday, just before the market close, put a DOWN/SELL/SHORT bet on.

Sometimes the price will 'gap' down overnight but otherwise fall during the Wednesday (fingers crossed!).

BUY to close the bet and reap bucket-loads of profit?

Backtesting this seemed to work beautifully using prices from dear old Sharescope but the actual prices, on Tradindex for example, vary a fair bit."

Talk about one born every minute.

Tried to warn the fools (5 pages and not a single informed post) but the stupid site would not let me register.

From etradespreadbetting (they all work more or less the same I'm sure):

Dividend adjustments

The morning after a share goes ex-div the price of the share will drop approximately by the amount of the dividend. Dividend adjustments are credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date.

If you are long, you will receive 80% of the dividend and if you are short, you will be debited 100% of the dividend.

Payment is credited/debited to your account on the ex-dividend date. Dividend adjustments apply to equity and index bets.

If anyone can get the fillyabooots site to register them, do put them straight.

Edited August 19, 2006 by Sledgehead

[Van]

LOL. What a twit.

I saw on Working Lunch that Boots was down about 16 points but Tradindex seems to be doing things completely differently. Huh? I've just updated my ShareScope and it clearly shows that Boots gapped down by 16 points at opening time. Boy, this is frustrating!

I reckon this theory has something going for it but probably not with Tradindex - I'm losing faith there.

That's right, blame the SB company, not your stupid "system"!

[Sledgehead]

I don't know whether etrade are copying Capital Spreads or vice versa, or whether one is the provider of t'other, but check out their ex-div policy and compare with etrades (linked above):

The morning after a share goes ex-div the price of the share will drop by approximately the amount of the dividend. Dividend adjustments are credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date.

If you are long, you will receive 80% of the dividend and if you are short, you will be debited 100% of the dividend.

Payment is credited/debited to your account on the ex-dividend date. Dividend adjustments apply to equity and index bets

As yogi once said, it's like deja vu all over again!

Edited August 20, 2006 by Sledgehead