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If you have successfully nominated your NAB Cash Manager Account (CMA) to be the settlement account for your share trading on nabtrade, the following rules will apply:
(a) you may be charged a fee and/or interest by NAB;
(b) nabtrade may also charge you additional costs incurred by us;
(c) you must arrange for the Debit Payment to be made by another method or arrange for sufficient cleared funds to be in your CMA by an agreed time so that we can process the Debit Payment; and
(d) nabtrade reserves the right to sell shares you may hold to recoup the costs of covering your trade.
The below scenarios illustrate how the CMA Trading Limits work. This incorporates Start of Day Balance and Available Trading Limit.
A customer buys $30k worth of stock (unsettled buy) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.
T0: Available trading limit = $20k (start of day balance is $50k less the $30k unsettled buy).
T1: Available trading limit = $20k (start of day balance is $50k less the $30k unsettled buy).
T2: Available trading limit = $50k (start of day balance is $50k, the unsettled buy has now been funded from the NAB Cash Manager account so the $30k unsettled buy is removed).
A customer sells $20k worth of stock (unsettled sell) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.
T0: Available trading limit = $70k (start of day balance of $50k plus $20k unsettled sell).
T1: Available trading limit = $70k (start of day balance of $50k plus $20k unsettled sell).
T2: Available trading limit = $50k (start of day balance of $50k, the sell order has now been settled to the NAB Cash Manager account so the $20k unsettled sell is removed).
A customer buys $50k worth of stock (unsettled buy) through an account which has nominated a NAB Cash Manager account for settlement. The account has a $50k start of day balance. This scenario demonstrates how the customer’s available trading limit changes throughout the course of trade settlement.
T0: Available trading limit = $0 (start of day balance of $50k less $50k unsettled buy) **The customer will be unable to place further trades unless more stock is sold, or the buy is settled from the linked NAB Cash Manager account.
T1: Available trading limit = $0 (start of day balance of $50k less $50k unsettled buy) **The customer will be unable to place further trades unless more stock is sold, or the buy is settled from the linked NAB Cash Manager account.
T2: Available trading limit = $50k (start of day balance of $50k, the buy order has now been settled from the NAB Cash Manager account so the $50k unsettled buy is removed).