Trade some of the stock markets’ biggest and most popular equities as CFDs and benefit from our competitive leverage to increase your exposure.
|Name||EGM's Abbreviation||Major / Minor||Type||Spread||Margin (KES)||Fixed Leverage||Contract size (1 lot)||PL of 1 lot||Min/Max trade size||Commission USD per lot (Each way)||Trading Hours (GMT +3)|
|Equity Index Future||N25Ixx||Minor||Future||Variable||46,420||price * contract size/margin||1 index point (KES 100.00)||100 KES per 1.0 move||1||0.14%||Mon-Fri 09:00-15:00|
Minimum price movement One index point (KES 100.00)
Contract months Quarterly contracts
Settlement Cash settled in Kenyan Shillings
Expiry dates 3rd Thursday of every expiry month (18-Mar-21, 17-Jun-21, 16-Sep-21, 16-Dec-21)
What are NSE Derivatives?
NSE Derivatives are futures contracts based on the most popular traded equities in Kenya, this includes:
In addition, an Index has been created cover 25 of the biggest stocks in Kenya, called the NSE 25 share index.
These Financial instruments are a contract between two or more parties. Which depend upon the value of an underlying asset which is typically a commodity, bond, equity or currency.
Investors buy or sell derivatives to manage their risk associated with the underlying security, to protect against fluctuations in its value, or to profit from market movements.
What EGM Securities Offers
At EGM we offer a derivative known as a CFD (contract for difference) rather than the underlying share itself. The price of the CFD is derived from the price of the share; the difference is that the holder of the CFD never owns part of the company.
The key benefits of trading on the derivatives vs the cash equity equivalent:
You’re able to trade long (buy) or short (sell)
Lower margin costs
Lower transaction costs
Hedge the Index
The ability to trade using leverage
How to calculate your profit or loss
The formulae for working out your P&L for any CFD shares is shown below
Long (buying): Profit or loss = ( Exit price - Entry price ) * Lots traded *Contract Size
Short (Selling): Profit or loss = ( Entry price - Exit price ) * Lots traded *Contract Size
Trade Date: 4-April-21
Trade Type: SELL
Contract Name: 17 June 21SCOM
Contract Size: 1,000
Trade price: 35
Initial Margin (IM) @KES 3,700: 3,700
Additional Margin (AM) @10%: 370
Total Margin: 4,070
Entry Fees @ 0.14%: 49
Exit Fees @ 0.14%: 48
Commission calculations: Price * Contract Size * 0.14%
Since this is a SELL trade, by selling futures means you gain from the downside price movements.
Since the market to market process is zero-sum, the seller’s profit is the buyer’s loss.
You enter the position at a price of KES 35 before exiting four days later at a price of KES 34.
|Date||Closing Price||P/L Calculation*||P/L||IM||AM||Fees||Net CF|
|04-04-21||34||(34 - 35) * 1 *1000||1,000||-3,700||-370||-49||-3,119|
|05-04-21||32||(32 - 34) * 1 *1000||2,000||-||-||-||2,000|
|06-04-21||33||(33 - 32) * 1 *1000||-1,000||-||-||-||-1,000|
|07-04-21||35||(35 - 33) * 1 *1000||-2,000||-||-||-||-2,000|
|08-04-21||34||(34 - 35) * 1 *1000||1,000||3,700||370||-48||5,022|
*Note: Buyers profit from price increases. Sellers profit from price decreases