D

Daily m-t-m

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.

Debenture

A debenture is an official certificate that indicates outstanding debt. A company or corporation hereby acknowledges this debt and its interest, which must be paid in regular intervals until all the outstanding money has been repaid. 

Debt-to-income ratio

A debt-to-income ratio indicates what percentage of an individual's gross monthly income is spent on repaying loans. This ratio is used to calculate how much debt (or more debt) a consumer can afford to take on.

Deed of sale

A deed of sale, also referred to as an agreement of sale, is a written contract stipulating the terms and conditions of a property sale, as negotiated and agreed on by both the seller and the buyer. Deeds OfficeThe Deeds Office is a governmental department responsible for registering transfers of immovable property.

Deeds office fee

This is a fee charged by the deeds o!ce for registering the new ownership of a property.

Default

A default occurs when one or more party fails to honour the terms of a particular agreement. DepreciationDepreciation refers to a gradual decrease in the value of an asset, such as a vehicle.

Deposit

This is a downpayment or partial payment made at the time of purchase (the difference between the purchase price and the deposit is the.

Dividends

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.

Downpayment

Also known as a deposit, a downpayment is a sum of money paid by a buyer out of his or her own pocket when purchasing an asset. The downpayment amount is the difference between the purchase price and the percentage of this price that is financed by a loan. Sometimes a minimum deposit amount is required by financiers. 

E

Earnest money

Earnest money, more commonly known as a deposit, is a predetermined amount of money that a person puts down when submitting a formal offer to buy a property.

EDGE

Enhanced Data Rates for the Global Evolution.

Economy

Economy refers to the management of resources belonging to a business, community or country. It may be thought of as a system of production, supply and consumption.

Electronic banking

Electronic banking refers to methods of banking that do not require accountholders to visit a physical branch of the bank. Electronic banking options include using the internet, a telephone, a cellphone, or an ATM. 

Equity

Equity refers to the difference between a property's market value and the outstanding mortgage repayments due on the property. In other words, it is the amount by which the value of a bonded property exceeds the sum still payable on the mortgage. 

Escrow

Escrow is the percentage of a homeowner's monthly loan instalment that is retained by the lender to pay bond insurance, taxes and other fees associated with the property. Escrow payments may also be referred to as 'reserves'. 

Estate

An estate is the financial or physical property owned by a living person. The estate is passed on to beneficiaries when this person dies. 

Execution premium

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

F

Fiduciary

A fiduciary is someone who assumes the obligation to manage, for example, a company or assets with the appropriate diligence, skill and care.

First-time homebuyer

This refers to a homebuyer who has never owned a property.

Fixed interest rate

A fixed interest rate means that the interest rate will remain unchanged for the duration of the loan agreement. The interest rate will therefore not be affected by market rate fluctuations. 

Foreclosure

Foreclosure is a legal action that occurs when a borrower defaults on loan repayments. All of the borrower's rights to a property are terminated by the lender. The lender then recovers the amount outstanding on the loan by selling the property at a public auction. 

Fluctuating payments

Fluctuating payments come into play where a variable interest rate applies. In effect, payment instalments are recalculated every time the interest rate changes.

Further loan

This loan is additional to the client’s current home loan.

Further loan (improvement)

This is a further loan used to make improvements to a property.

Further loan (lifestyle)

This is a further loan used for lifestyle needs, eg a holiday, medical expenses and education.

Freehold

Freehold ownership occurs when an individual owns both the property and the piece of land on which the property is built.