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What is dividend payment for borrowed stocks?

If you sell short a stock and a dividend is paid for that stock, and you still hold a short position in that stock on the trading day before the ex-dividend date, then you will be responsible for paying the dividend to the stock lender, and Moomoo Securities Australia Ltd will deduct it from your account on the dividend payment date. If you do not want to pay that dividend, you can close your position prior to the trading day before the ex-dividend date.

 

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