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Understanding Ex-Dividends and Their Impact

Ex-dividends occur when a company decides to distribute a portion of its profits to shareholders. This can influence the stock price, as well as the prices of indexes or ETFs that include that stock.

When a stock goes ex-dividend, a cash adjustment is typically made to your account, reflecting the dividend payment. At the same time, the price of your holding is adjusted downward to offset this cash distribution, effectively negating the cash impact.

In some instances, companies may issue stock dividends instead of cash. In such cases, we will adjust your position accordingly to reflect this change.

At Polaris, we ensure that any adjustments related to ex-dividends in the underlying instrument are mirrored in your CFD holdings with us, maintaining consistency and transparency in your trading experience.

Common Corporate Actions on Stocks

Corporate actions are routine events that can significantly impact stocks in the marketplace. Here are some common examples:

• Stock Splits

• Reverse Splits

• New Share Issuances

• Dividends (Cash or Stock)

• Mergers and Acquisitions

• Rights Issues

• Spin-offs

At Polaris, we ensure that any corporate actions affecting your holdings are accurately mirrored in your account.

In most instances, these actions have no economic impact on your equity or positions. For example, with an ex-dividend adjustment, any cash deduction you see will be counterbalanced by a corresponding price movement in your open positions, resulting in a net economic effect of zero.

Understanding Financing on Credit Extended

Financing on credit extended refers to the ability to leverage borrowed funds for trading purposes, which can enhance potential returns but also comes with risks.

At Polaris, we strive to remain competitive by offering attractive raw financing and swap rates. In some cases, our partners opt to create commercial incentive deals that encompass all transaction costs, incorporating financing and swap rates as potential rebates. Alternatively, some partners may request swap-free products.

We are committed to accommodating all requests whenever possible, as flexibility and customization are core principles of our approach. However, it’s important to note that in rare situations—such as adverse market conditions or instances of exploiting favorable trading scenarios—fulfilling such requests may not be feasible.

Understanding Negative Balance Protection

While we prefer to treat all our clients equally, we must recognize the distinctions between retail and institutional investors as defined by global regulators.

Negative balance protection is available for individual retail accounts on our platform. This powerful feature allows you to manage your risk effectively, ensuring that you never lose more than your initial investment.

However, in our commitment to transparency, we must emphasize that this protection can be misused. Polaris has a strict zero-tolerance policy regarding any abuse of negative balance protection. Any partners attempting to exploit this feature will have their accounts terminated and trading privileges suspended permanently.

Impact of Market Holidays on Trading

Market holidays can influence trading hours and, in some instances, trading conditions. Polaris may choose to keep certain markets open and quote prices even if the exchange is closed, or we may close markets that are open due to very low liquidity or other concerns. In any case, we will keep our partners informed through platform messaging or emails to ensure everyone is updated.

Our Commitment to Partnership and Success

At Polaris, we operate as a cooperative, treating everyone as a valued partner and striving for collective success. We are dedicated to providing all our partners with institutional trading conditions and a favorable market environment to enhance the chances of success for everyone involved. However, we recognize that these favorable conditions can sometimes be exploited, potentially harming the experience for all.

Transparency is a core value at Polaris.

In short, if we detect any misuse of these conditions, we will promptly communicate our concerns to partners and request that they cease such behavior. If intentional abuse persists after our warning, we will have no choice but to suspend trading on that account and terminate the partnership.

We trust that all our partners will extend the same respect to us that we offer them.

Let’s succeed together!