South Africa 40 index

Trade the South Africa 40 index for 24 hours, take advantage of broad market movements in one simple trade.

Cash

Our Stock Indices are based on the underlying instrument and we charge no commission on them; all you pay is the dealing spread. Based on the underlying market, however, spreads may vary to those specified in the Contract Details.

Stock indices information (Trader Account) - Cash contracts 

Index and trading hours [4] Type of contract [4] Value of one contract Spread
('extended hours' and 'out of hours' spreads follow in brackets if applicable) [1]
Guaranteed stop premium [2] Margin requirement [3]
South Africa 40
24 hours
Standard R50

Variable

(50)
 

6 1.5%
South Africa 40
24 hours
Mini R10

Variable

(50)
 

6 1.5%
South Africa 40
24 hours
Micro R2

Variable

(50)
 

6 1.5%

*Contract not quoted between 10.15pm (UK) on Friday till 11pm (UK) on Sunday.

Futures

What are IG's SA40 CFD product details?

Index and trading hours [4]

Type of contract [4]

Value of one contract

Spread
('extended hours' and 'out of hours' spreads follow in brackets if applicable) [1]

Guaranteed stop premium [2]

Margin requirement [3]

South Africa 40
24 hours

Standard

R50

12

(50)
 

6

1.5%

South Africa 40
24 hours

Mini

R10

12

(50)
 

6

1.5%

*Contract not quoted between 10.15pm (UK) on Friday till 11pm (UK) on Sunday.

Our future contracts expire at specified future dates. There are no separate funding adjustments: a fair value is priced into our quotation. Based on the underlying market, spreads may vary to those specified in the Contract Details.

Notes to tables

Notes to tables

Our South Africa 40 Stock Index is a special form of CFD that gives a client exposure to changes in the value of the stock index but cannot result in the delivery of any share or instrument by or to the client.

1. Our in-hours South Africa 40 cash index price is derived from the underlying near-dated ALSI futures contract adjusted by removing its fair value calculation. Fair value is the natural premium at which the futures market tends to trade which reflects interest advantage and disadvantage of forgone dividends. For in-hours trading, the price spread is fixed, provided that the underlying market spread remains within a predetermined parameter. Alternatively, should the underlying market spread widen, our price will become the market spread with 4 points added to either side of the spread.  As the fair value calculation is removed from the underlying futures to derive our price, the index will therefore be subject to overnight financing at a set rate linked to SABOR and will be subject to dividend adjustments.

The out-of-hours South Africa 40 cash index price is derived by anticipating the underlying near-dated AlSI futures contract next opening price relative to international market and currency movements.

2. For Limited Risk transactions, a Limited Risk premium is charged on the opening.

3. The minimum transaction size is one contract.

4. Local times listed. Please contact us for specific information about public holidays.

5. CFDs on stock indices are Undated Transactions that do not expire (unless requested). For each day that a position is held adjustments are calculated to reflect the effect of interest and dividends. For stock index contracts denominated in South African rand, a daily interest adjustment is calculated for any position that is opened before 16:50 (SA Time) and that is still open after 16:50 (SA Time). These adjustments are posted daily to the client's account.

 i) Interest adjustments are calculated as follows:

    D = n x L x C x i / 365

    Where:

    D = daily interest adjustment

    n = number of lots

    L = lot size

    C = underlying index price at time of calculation

    i = applicable annual interest rate

The applicable interest rate will be +/-2.5% above/below the indicator cash rate of that index with the exception of non-standard indices and forex contracts, which will be calculated using a rate of +/-3% above/below the indicator cash rate. For stock index contracts denominated in South African rands the applicable rand cash rate will be used.

Note: The formula uses 365-day divisor for non-UK indices.

Interest in respect of long positions is debited from a client's account and interest in respect of short positions is generally credited to a client's account.

 ii) A dividend adjustment is applied when a component share passes its ex-dividend date in the underlying stock market. In the case of long positions, the dividend adjustment is credited to the client's account. In the case of short positions, the dividend adjustment is debited from the client's account.

6. Trading times are local times.

7. IG normally quotes in-hours spreads during official trading hours of the underlying instrument. Out of hours spreads apply outside of these times and during relevant market holidays.

8. Clients may request that an open stock index position will expire on the day that the request is made. We are unlikely to agree to such a request if either:

 a) the size of the position or positions is larger than 10 contracts

 b) the request is made less than two hours before the close of the related expiry market.

On our agreement to an expiry request, the transaction or transactions in question will become an Expiry Transaction, and will automatically expire at the official closing price of the related expiry market.

9. The change value on SA40 index cash contracts is reset to zero at 16h50 each day.

South Africa 40 quick example

Buying the South Africa 40 index

  Cash CFD
Underlying market/value South Africa 40 Future 45600
Our price

South Africa 40 Cash

45455 / 45465

Trade

Buy at 45465

Trade size

1 contract / R50 per index point

Margin required

Exposure (number of contracts x trade size x price) x 1.5%

1 contract x R50 x 45465 x 1.5%

= R34,098.75.

What happens next? The market rises and two days later our quote is 45756 / 45766
Close

Sell at 45756

Gross profit

Gross profit subject to tax = R14,550

(291 points (45465 - 45465) x R50 per point)

What if...

If the market fell 291 points instead:

291 x R50

R14,550 gross loss

 

South Africa 40 detailed example

Buying the South Africa 40 index

  Cash CFD
Underlying market/value South Africa 40 Future 45600
Our price

South Africa 40 cash

45455 / 45465

Trade

Buy at 45465

Trade size

1 contract / R50 per index point

Margin required

Exposure (number of contracts x trade size x price) x 1.5%

1 contract x R50 x 45465 x 1.5%

= R34,098.75

What happens next? The market rises and two days later our quote is 45756 / 45766
Funding

*Overnight funding charge R498.25

(SABOR (5.5%) + 2.5% x number of contracts x value x price) / 365 per day

Close

Sell at 45756

Overall Market Movement & profit/loss

Gross profit = R14,550

(291 points (45756 - 45465) x R50 per point)

Costs

10-point IG spread (Included) + overnight funding cost = R995.50 (R498.50 x 2 days) 

R14,550 - R996.50

Net profit R14,550 - R996.50 = R13,553.50 net profit subject to tax
What if...

If the market fell 291 points instead:

291 x R50 = R14,550

Gross loss R2,842.65

*Overnight funding is calculated on the closing price

Global indices

Major indices, such as those from the US (Dow Jones Industrial Average and S&P 500) will often set the tone for movements on our local index. US and European equity markets are open past the close of South African markets, while Asian markets open well before the open of South African markets.

Traders of the SA40 Cash Index might consider watching what’s happening in the global market place for context, direction and well as gauging a general sentiment for the trading day ahead.

Live indices prices

Markets Bid Offer Updated Change
South Africa 40
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China A50
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FTSE 100
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Germany 30
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US 500
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Wall Street
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NASDAQ OMX Group Inc
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Prices above are subject to our   website terms and conditions. All shares prices are delayed by at least 15 mins.

SA40 index constituents

There are 42 shares which make up the Jse Top 40 Index (Mondi and Investec each have two listings in the Index). The South Africa 40 Cash index price is derived from the near dated underlying futures contract of the Jse Top 40 Index. In turn movements in the underlying shares which make up the Index will have an influence on the SA40 Cash Index.

Within the Top 40 Index, the Top ten shares account for roughly 67% of the index value. Traders of the SA40 Cash Index might consider adding these shares to a watch list in lieu of their effect on index movements. Of particular importance would be Naspers (more than 20% weighting in the index), BHP Billiton and Richemont (each with a more than 10% weighting in the index).

SA40 index constituents

Markets Bid Offer Updated Change
Naspers Ltd
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BHP Billiton PLC (SA)
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Anglo American PLC (SA)
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Sasol Ltd
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Standard Bank Group Ltd
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FirstRand Ltd
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British American Tobacco PLC (LSE)
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MTN Group Ltd
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Mondi Ltd (SA)
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Prices above are subject to our   website terms and conditions. All shares prices are delayed by at least 15 mins.

Rand

A number of shares which form part of the Top40 index earn their income in foreign denominated currencies, such as the US Dollar, the British Pound and the Euro (to name but a few). A weaker rand would mean that when repatriating funds to South Africa, those companies would receive more of the domestic currency for their foreign currency. Shares which derive most of their earnings in foreign currencies are known as rand hedge counters. More than 65% of earnings, from shares which make up the index, are derived in foreign currency. In turn, a weaker rand can be considered positive influence on the Index as it would be considered positive for (rand) earnings in the shares that make up the index (as these shares make up the majority of earnings on the index). Inversely a stronger rand might be considered negative for these shares and in turn the index.

Notable rand hedge counters include the Naspers, Richemont, BHP Billiton and Sasol.

Live forex prices

Markets Bid Offer Updated Change
USD/ZAR
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EUR/ZAR
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GBP/ZAR
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GBP/USD
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Prices above are subject to our website terms and conditions. Prices are indicative only.

News & analysis

Open an account now

It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.

Contact us

24 hours a day from 10am Saturday to Friday night at midnight.

010 344 0053

You can also email helpdesk.za@ig.com

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.