How Dividend Adjustments Work for Stock Futures

This article explains how BloFin processes dividend adjustments for Stock Perpetual Futures that trade 24/7.

When a stock begins trading ex-dividend, its price typically decreases by the dividend amount. To account for this change in the contract price, BloFin applies a one-time special funding settlement, during which short position holders pay long position holders. 

Note: Check the adjustment schedule and review your positions before the ex-dividend date.

1. How dividend adjustments work

Dividend adjustments take place around the ex-dividend date. The timing varies based on the market where the underlying stock is listed. Check the contract’s trading page for the exact schedule.

During a dividend adjustment, BloFin will:

• Change the funding interval to one hour.
• Place the contract in reduce-only mode.
• Process the regular funding settlement.
• Process the Special Dividend Funding settlement.
• Disable reduce-only mode.

2. How Special Dividend Funding is calculated

Special Dividend Funding uses a negative funding rate. This means short position holders pay the funding fee, while long position holders receive it.

The calculation method depends on how the company distributes the dividend.