Unlike other forms of derivatives (i.e. options and futures) cashflows such as carry costs and dividends are not reflected in the price of an ASX Listed CFD. Instead cashflows are paid whilst the position is open, allowing ASX Listed CFD prices to track the underlying security rather than trade at a discount or premium, as can be the case with other types of derivatives.
ASX Listed CFDs have five distinctive cashflows that impact on holders of an open position:
- Contract Interest
- Open Interest Charge (OIC)
- Dividend Cashflow
- Franking Credit Cashflow (ASX Equity CFDs only)
The table below indicates which cashflow is paid or received depending on the position held.
|Open Interest Charge||Pay||Pay|
|Franking Credit Cashflow||Receive||Pay|