Chi-X warrants now available on nabtrade
We are pleased to announce that nabtrade customers can now access nearly 600 additional warrants following our agreement with Chi-X Australia to facilitate Chi-X’s warrant trading.
If warrant trading is already enabled on your account, you can transact ASX and Chi-X warrants immediately. However, before trading Chi-X warrants, it's important that you review:
If you’d like to enable warrants trading, log in and go to Admin > click Permissions > Apply for warrants trading and complete the steps.
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Borrow against your existing portfolio of shares or managed funds.
With access to more funds, invest in a wider range of securities.
Take advantage of opportunities - without using your own capital.
While a margin loan can increase your gains, it can also magnify your losses. It's important that you consider your individual financial circumstances.
Margin lending is a gearing strategy where an investor borrows funds from a lender to invest in a portfolio of listed securities and/or managed funds.
The main purpose of using a margin loan is to amplify the returns from any increase in the value of underlying assets than otherwise would have been possible if an investor used purely their own capital. It is a higher-risk strategy that can also magnify losses.
Most margin loans also have a Margin Call feature, potentially putting investors into a Margin Call should the value of the underlying assets decline below a defined level.
In the event that the investor's portfolio security value falls below a specified level (the Margin Call LVR) a Margin Call is required. Where a Margin Call is made the investor must reduce their gearing level, below the Margin Call LVR, by either depositing additional cash or securities to the lender, or by selling securities in the portfolio.
With a margin loan you provide existing approved investments in shares, managed funds or cash as security for the loan.
You can then use the borrowed money to access a greater range of investment opportunities, as you are not limited to investing your own capital.
Like other investment strategies, margin lending involves an element of risk. Just as there is potential for growth, there is also potential for loss. It is important that you consider your individual financial circumstances.
While a margin loan can increase your gains in a rising market, it can also magnify your losses when the market declines. Consequently, you should consider investing in a diversified portfolio of quality assets and ensure you have enough time (and discipline) to ride out investment market fluctuations.
The table below highlights some of the risks involved in gearing and how you could potentially manage each of these:
|Risk description||How to manage the risk|
|Lowered security LVR||
|Rising interest rates||
|Balance||Variable rate (p.a)||Refinance
variable rate (p.a)
Interest yearly in
|Less than $250,000||6.40%||5.90%||6.15%|
|$250,000 - less than $500,000||5.65%||5.15%||5.40%|
|$500,000 - less than $1.0m||5.40%
Interest rates effective from 1 September 2016. Rates apply to new loans only
Step 1: Open a new nabtrade trading account and select margin loan under 'How would you like to pay for your trades?' when completing the application form.
Step 2: Once you’ve completed the application form, we’ll contact you to confirm the details we need to complete the setup of your NAB Margin Loan.
Step 3: When the information is received, we’ll set up your NAB Margin Loan Facility - usually within 48 hours.
The same NAB margin loan supporting a domestic trading account can now be used to support nabtrade international share trading. Features include:
National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 (NAB) is the issuer of the CMA and the NAB Equity Lending Facility and recommends you consider the PDS for both of these products before making any decisions regarding these products. The PDS documents are available at nab.com.au/equitylending.