In a long position the client would receive on his CFD the cash equivalent of the corporate action due on the reference instrument. In the case of a short position the cash equivalent is deducted from the client’s margin account that is due to Nedbank Capital as result of the corporate action due on the reference instrument.

This is an abbreviation that stands for 'contracts for difference'. A CFD is a derivative instrument that allows geared exposure to movements in the price of an underlying reference instrument. The client gets the profit or loss of the movement in the underlying reference instrument. A CFD typically allows a client to gear himself up to 10 times the amount of cash that he has placed on margin account. This benefits the client by allowing him greater equity exposure than he would ordinarily be able to obtain.

The closing m-t-m of the reference instrument price multiplied by the CFD positions.

The difference between the execution price of the CFD and the closing price of the CFD. The CFD price tracks the price of the underlying reference instrument.

The client would receive on his CFD the cash equivalent of the dividends distributed on the reference instrument. The cash is paid into the client's margin account on the day the reference instrument goes ex-dividend. In the case of a short position the client would have to pay Nedbank Capital the cash equivalent of the dividends distributed on the reference instrument. The cash will be deducted from the client's margin account on the day that the reference instrument goes ex-dividend. Nedbank Capital reserves the right to adjust the value of the cash equivalent received by the client to account for the time value of money.

The premium payable by the client to Nedbank Capital when the client physically enters or exits a CFD position.

A fee charged to Nedbank Capital by brokers on the opening and closing of every position of a broker’s client. This charge is remitted to the broker at the end of each month. It is only applicable to broker’s clients and has no impact on the ordinary retail client who has no broker.

The difference between the opening margin and the closing margin that represents the margin change.

In respect of a given CFD on any date, an amount calculated as: CFD notional value x margin rate.

A cash deposit required to be made by the client with Nedbank Capital, calculated with reference to the closing value of the reference instrument on a daily basis. Nedbank Capital reserves the right to increase the margin requirements of the individual reference instruments by imposing a margin based on an assessment of the client's financial status.

The opening m-t-m equals the previous day's closing m-t-m plus or minus any purchases or sales of CFDs during the day.

An amount, calculated on a daily basis, equal to the CFD notional value, where the reference instrument price is the close of business value of the reference instrument as determined by the JSE, multiplied by a percentage set by Nedbank Capital and applicable to a CFD transaction where an investor buys a CFD, and which percentage will be equal to the SAFEY rate plus a maximum spread of 2% (two percent). The maximum spread will be determined by Nedbank Capital, from time to time, based on the underlying market conditions, which are reflected in the SAFEY rate and will be published on the website.

An amount, calculated on a daily basis, equal to the CFD notional value, where the reference instrument price is the close of business value of the reference instrument as determined by the JSE, multiplied by a percentage set by Nedbank Capital and applicable to a CFD transaction where the investor sells a CFD, and which percentage will be equal to the SAFEY rate minus a maximum spread of 3% (three percent). The maximum spread will be determined by Nedbank Capital, from time to time, based on the underlying market conditions, which are reflected in the SAFEY rate and will be published on the website.

The underlying listed share whose share price the CFD instrument replicates.

In respect of a given order on any date, an amount calculated as: CFD notional value x margin rate.

The premium payable by the client to Nedbank Capital for facilitating the short sale of equities. This premium is calculated on the closing value of all reference instruments that are short at the close of business and is included in the overnight short premium.

The cash balance in the margin account less the aggregate of the Aggregate Reserved Amount and the Aggregate Margin Required.