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ANGLORAND FINANCIAL SERVICES GROUP Contracts for Difference Platform (CFDs) ART Investor.

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Presentation on theme: "ANGLORAND FINANCIAL SERVICES GROUP Contracts for Difference Platform (CFDs) ART Investor."— Presentation transcript:

1 ANGLORAND FINANCIAL SERVICES GROUP Contracts for Difference Platform (CFDs) ART Investor

2 ANGLORAND FINANCIAL SERVICES GROUP Derivatives Trading Trading of derivative instruments within the Anglorand group is facilitated through two wholly owned subsidiaries of Anglorand Securities Ltd, these being Anglorand Futop (Pty) Ltd and Anglorand Asset Managers (Pty) Ltd.

3 ANGLORAND FINANCIAL SERVICES GROUP Anglorand Futop (Pty) Ltd Anglorand Futop is a registered member of the South African Futures Exchange (SAFEX) and offers clients the ability to trade futures and options contracts on a wide variety of underlying assets, including individual JSE listed stocks, exchange traded funds, financial indices, currencies and agricultural commodities. Futures are contracts that are legally binding agreements, made via an electronic screen dealing system, to buy or sell the underlying asset at a specific time in the future at a specific price determined today. A futures contract can either require physical delivery of the underlying asset or be cash settled. A cash-settled contract requires a cash amount to be paid on the contract expiration day which reflects the difference between the initial futures price and the price of the underlying asset at settlement. Deliverable contracts, on the other hand, require the buyer to take delivery of the physical asset and the seller to deliver. In most cases, actual delivery seldom takes place as the contracts are closed out prior to the expiration date. A trader who has bought a futures contract can close out by selling the same number and type of futures contract he bought and vice versa.

4 ANGLORAND FINANCIAL SERVICES GROUP In order to open a futures position one is only required to deposit a percentage of the underlying asset value as a form of collateral. This collateral, or good faith deposit, is known as margin. This gearing factor is one of several reasons why such transactions are popular with the active participants in the market. On Single Stock Futures (SSFs) for example one could obtain an exposure to the market that is ten times higher than the cash required for margin on many of the more liquid large cap stocks listed on the JSE. Futures can be utilised by an investor to hedge his portfolio against adverse movements in the underlying markets. They can also be used by investors with higher risk appetites wishing to take advantage of high levels of gearing with a view to gaining large returns on relatively small price movements, either up or down. Anglorand Futop (Pty) Ltd

5 ANGLORAND FINANCIAL SERVICES GROUP Anglorand Asset Managers is registered with the Financial Services Board (FSB) as a Financial Services Provider and offers clients the ability to trade Contracts for Difference (CFDs) on many of the stocks listed on the JSE. CFDs can be used in much the same way as futures to hedge a portfolio against adverse price movements or as shorter term investments for that portion of an investors portfolio that can accommodate a higher degree of risk to take advantage of similar levels of gearing to those in the futures markets. Unlike Single Stock Futures, CFDs do not have expiry dates as the contract is for the difference in the share price whenever the clients position is closed not for delivery of the shares at a specific future date. In this way the costs associated with rolling an expiring position forward to the next expiry date are avoided. CFDs can be traded online by clients on Anglorand Asset Managers own online trading system ART. When a client trades CFDs with Anglorand Asset Managers he is trading directly with Anglorand as his counterparty in an unregulated trading environment, whereas Single Stock Futures are traded via SAFEX on a strictly regulated exchange basis involving a clearing member structure to mitigate any counterparty risk. Anglorand Asset Managers (Pty) Ltd

6 ANGLORAND FINANCIAL SERVICES GROUP Risks of Gearing Trading derivatives exposes an investor to the possibility of far higher returns on investment than could otherwise be obtained from a conventional equities trade but by the same token an investor could incur much greater losses and trading in geared instruments should only be undertaken by investors with a full understanding of the risks involved.

7 ANGLORAND FINANCIAL SERVICES GROUP Anglorands proprietary trading platform, enables clients to trade most of the liquid assets quoted on exchanges around the globe. Artrader offers: Real Time Internet Trading Mobile Trading Real Time News Research Technical Analysis Portfolio Management ART Login requires username password and PIN and uses 128 bit inscription to create a secure connection.

8 ANGLORAND FINANCIAL SERVICES GROUP The ART trading window is a fast, efficient and user-friendly platform for effective on-line trading.

9 ANGLORAND FINANCIAL SERVICES GROUP Full, real time reports available online.

10 ANGLORAND FINANCIAL SERVICES GROUP Direct access to ARTs technical analysis tools.

11 ANGLORAND FINANCIAL SERVICES GROUP Direct access to Anglorands secure research page from the ART platform.

12 ANGLORAND FINANCIAL SERVICES GROUP Direct access to Reuters headlines and news stories from the ART platform.

13 ANGLORAND FINANCIAL SERVICES GROUP CONTACT DETAILS National Phone Number: Websites HEAD OFFICE – GAUTENG 1st Floor, Broll Place Sunnyside Office Park 32 Princess of Wales Terrace Parktown 2193 Telephone: (011) Fax: (011) BRANCH – CAPE TOWN Unit 1-4 Beuno Vista Office Park Kendal Road Durbanville 7550 Telephone: (021) Fax: (021)

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