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How to handle a stock dividend during short-selling

If you have borrowed a stock for short selling, a dividend is paid during the period, and you still hold the short position on the trading day before the ex-dividend date. You will be responsible for paying the lender of the stock a dividend, and Moomoo Financial Singapore Pte. Ltd. will deduct the amount from your account on the dividend payment date. Your actual interest does not change. As the stock price drops after the ex-dividend date, your short position will increase by the same amount of floating profit, which will be offset by the increase and decrease of the short position. If you don't want to pay this dividend, you can close your position on the trading day before the ex-dividend date.