M

Margin change

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

Margin required

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

Margin requirement

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.

Market value

Market value refers to the price for which a property can be sold, as mutually agreed on by the buyer and the seller. 

MasterCard

MasterCard is a credit card association and globally accepted credit card brand.

Minimum due (repayment)

Minimum due (also referred to as 'repayment') is the minimum amount of money that a credit cardholder must pay towards his or her credit card expenditure on or before the date specified on his or her credit card statement.

Monthly instalments

Home loans and vehicle loans are usually repaid in regular monthly instalments, usually via debit order, to a lending institution. These monthly repayments include the principal amount as well as the interest. During the initial years of the loan the repayments are applied primarily towards interest costs. During the later years of the loan instalment amounts generally cover the outstanding principal amount. Depending on the type of home or vehicle loan you have, your monthly instalments could be affected by interest rate fluctuations. Furthermore, any changes in the principal amount of your loan may affect your repayments. In South Africa lending institutions generally do not grant loans where the monthly instalment amount exceeds 30 percent of single or joint gross monthly household income.

Mortgage bond

A mortgage bond is the right to assets given as security for a loan by a prospective homeowner to a lender, whereby the homebuyer is issued enough money to buy a specific property. This agreement is structured over a specific period – usually 20 or 30 years – and usually entails monthly repayments of the debt, at an interest rate that is either flexible or fixed. 

Mortgage broker

A mortgage broker is a company or individual who organises financing for borrowers. 

N

Nasdaq Stock Market

Listing more than 5 000 companies, the Nasdaq Stock Market consists of two independent markets – the Nasdaq Smallcap Market for up-and-coming businesses, and the Nasdaq National Market for large, influential businesses. It is the world's first electronic stock market. 

National Home Builders Registration Council

The National Home Builders Registration Council (NHBRC) is a regulatory body created to protect the interests of homebuyers and to regulate property developers and builders in terms of their trade. One of this organisation's core functions is to enforce a quality benchmark in terms of building and craftsmanship, and to hold developers and builders accountable for the housing that consumers buy from them.

Netbank 1.1

A previous version of Netbank (internet banking).

Net assets

The net assets of businesses or individuals are determined when both current and long-term liabilities are subtracted from total assets. 

Net asset value (NAV)

Net asset value is the total worth of a particular fund's investments. In the case of mutual funds, NAV per share normally corresponds to the fund's market price, whereas the market price can fluctuate considerably with closed-end funds.

New development

This is a property bought o"-plan in a development.

Nominal exposure

The reference instrument price multiplied by the quantity of CFDs.

O

Occupation

In terms of home loans and related contracts, occupation generally refers to the specific date on which a new owner is legally entitled to move into his or her new property. Transfer, on the other hand, refers to the point at which the ownership moves from the seller to the buyer. 

Occupational rent

If a property buyer wishes to move into a new property before transfer has taken place, he or she will be required to pay occupational rent. The seller and the buyer need to agree on a suitable occupational rent. This is generally calculated as a pro rata amount of a full month's rent. 

Offer to purchase

Once prospective homebuyers have found their dream house, the next step towards buying it is to submit an offer to purchase to the seller. An offer to purchase is a formal document, usually prepared by an estate agent. It contains the offered purchase price, as well as the conditions of sale (offer subject to sale of existing property, bond approval, etc). 

Oligopoly

An oligopoly refers to a market with a few powerful players who often collaborate to influence both the supply of a product as well as its market price. 

Open-end credit

A flexible arrangement whereby credit grows as purchases are made or cash is advanced. 

Open-end lease

An open-end lease is a special lease agreement that allows an extra deposit to be made when the agreement expires – this caters for possible fluctuations in the value of the property.

Open-end mortgage

An open-end mortgage is a type of mortgage against which further debt can be extended. 

Overdraft

An overdraft is a loan, or a 'line of credit', extended to a personal accountholder by a bank. Overdrafts are revolving loans, which means that you can access your line of credit at any time without having to apply for a loan each time. Provided that you repay your loan amounts and interest calculated on your outstanding balances regularly, this loan agreement can go on indefinitely, giving you financial flexibility. 

Overnight long premium

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.

Overnight short premium

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.