ProductFXPesa's AbbreviationMargin (KES)SpreadTypeLeverage*Contract Size*Min/Max Trade sizeCommission (Each way)Trading Hours (GMT +3)
ABSA Bank Kenya PlcABSAxx2090VariableFutureprice * contract size/margin1000 Shares10.14%Mon-Fri 09:00-15:00
British American Tobacco Kenya LtdBATKxx5500VariableFutureprice * contract size/margin100 Shares10.14%Mon-Fri 09:00-15:00
East African Breweries LtdEABLxx2640VariableFutureprice * contract size/margin100 Shares10.14%Mon-Fri 09:00-15:00
Equity Group Holdings PlcEQTYxx5390VariableFutureprice * contract size/margin1000 Shares10.14%Mon-Fri 09:00-15:00
Kenya Commercial Bank Group PlcKCBGxx5610VariableFutureprice * contract size/margin1000 Shares10.14%Mon-Fri 09:00-15:00
Safaricom LtdSCOMxx4070VariableFutureprice * contract size/margin1000 Shares10.14%Mon-Fri 09:00-15:00

*Contract size

For shares trading below KES 100: One contract equals 1,000 underlying shares
For shares trading above KES 100: One contract equals 100 underlying shares

**Margin

Indicative Only - Variable margin as per the exchange

Leverage Calculation:

"Leverage depends on the price: Leverage = price * contract size/margin.

Example on ABSA:
If price is 10, then leverage is: 10*1000/2090 = 4.78

if price is 20, then leverage is 20*1000/2090 = 9.57"

Contract Months

Quarterly contracts

Minimum price movementPrice RangeTick Size
Below 100.000.01
≥ 100.00 < 500.000.05
≥ 500.000.25

Trading Fees: 

Note: Trading fees are charged as a percentage of the value of the trade.

E.g. A single stock future trade worth KES 1,000,000 would attract a total fee of KES 1,400

NameEGM's AbbreviationMajor / MinorTypeSpreadMargin (KES)Fixed LeverageContract size (1 lot)PL of 1 lotMin/Max trade sizeCommission USD per lot (Each way)Trading Hours (GMT +3)
Equity Index FutureN25IxxMinorFutureVariable46,420price * contract size/margin1 index point (KES 100.00)100 KES per 1.0 move10.14%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:

  • British American Tobacco Kenya
  • KCB Group Plc
  • Equity Group Holdings
  • Safaricom
  • East African Breweries
  • ABSA Bank Kenya PLC

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)

  • You cannot short sell Kenyan cash equities

Lower margin costs

  • Contract entry starts at 2,090 KES (20.90USD) for equities and 46,420 KES (464.20 USD) for the Index

Lower transaction costs

  • Transaction costs are a flat 0.14% for Single Stock Future and 0.14% for Index Futures

Hedge the Index

  • The Ability to trade the index gives clients arbitrage opportunities where clients can buy the stock vs the Index

The ability to trade using leverage

  • You can gain more exposure and increase potential profits (also has the potential for increased losses)

 

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

Example:

Trade Date: 4-April-21

Trade Type: SELL

Contract Name: 17 June 21SCOM

Contract Size: 1,000

Quantity: 1

Trade price: 35

Exposure: 35,000

 

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.

 Example Trade:

DateClosing PriceP/L Calculation*P/LIMAMFeesNet CF
04-04-2134(34 - 35) * 1 *10001,000-3,700-370-49-3,119
05-04-2132(32 - 34) * 1 *10002,000---2,000
06-04-2133(33 - 32) * 1 *1000-1,000----1,000
07-04-2135(35 - 33) * 1 *1000-2,000----2,000
08-04-2134(34 - 35) * 1 *10001,0003,700370-485,022
1,00000-97903

*Note: Buyers profit from price increases. Sellers profit from price decreases