1. Portfolio Diversification using Financial Derivatives Presented by: Amro Abdu Middle East Head of Sales

2. - A financial management technique that aims to minimize the effect of a single poorly performing investment in the portfolio by spreading out the risk among a balanced mixture of investments. What is Portfolio Diversification

3. Why Diversify “Don’t put all your eggs in one basket” Limit impact of poorly performing investment Increase exposure to multiple markets

4. Guideline to diversification What are my investment goals? What is my time frame to reach these goals? Can I afford to invest regularly? What growth rate do I need to reach my goals? What is my risk tolerance to reach my investment goals

5. Types of Diversification Horizontal Diversification Vertical Diversification

6. Instruments of diversification Commodities Stocks and stock indices Forex

7. What are CFDs? A Contract For Difference is exactly that, it is a contract with an entity (broker) to exchange the difference between the opening value and the closing value of an instrument, whether that instrument is an individual equity, a bond, a future, option and so on.

8. commodities Agriculture Energy Metals

9. Agriculture CFDs Softs London Coffee London Sugar London Cocoa Orange Juice US Cocoa US Cotton No. 2 US Sugar 11 US Coffee "C"

10. Soft Commodity Fundamentals Beginning Stock Production Imports Total Supply Demand (local Demand and Overseas) Ending Carry over stocks

11. Energy CFDs Oils NYMEX WTI crude oil Brent crude oil

12. Major Energy Fundamentals Weather Seasonality API and DOE report (supply/demand) Geopolitics Opec

13. Metals CFDs Metals Gold Silver Copper Platinum Palladium

14. Metal Fundamentals Gold: Central banks, Geopolitics, China and India, Inflation and Interest Rates Silver: Copper, Zinc, and lead production, photography market, India Platinum: Japan, automotive industry and the environment. Copper: Industry and construction, geopolitics

15. Stocks CFDs United States WallStreet 30 US SPX 500 US Tech 100 Europe Netherlands All-Share Austria 24 Belgium 20 Germany 160 UK 350 Spain 35 Italy 40 France 250 Switzerland 28 Australia Australia 500

16. Indices Europe UK 100 Netherlands 25 Finland 25 Norway 25 Denmark 20 Hungary 14 France 40 Germany 30 Germany Mid-Cap 50 EU Stocks 50 Spain 35 Poland 20 Italy 40 Switzerland 25 NEW! Sweden 30 NEW! Austria 20 North America WallStreet 30 US SPX 500 US Tech 100 US Small-Cap 2000 NEW! Mexico 35 NEW! Canada 60 Australia Australia 200 Asia Hong Kong 40 Japan 225 NEW! India 50 NEW! China H-Shares NEW! Singapore Blue Chip NEW! Korea 200 Africa NEW!South Africa 40

17. Equity Fundamentals General Economic Activity Interest rates Inflationary Expectations Political Consideration Investor Attitudes Innovation

18. Forex 3.4 Trillion a day in volume Leverage of up to 400:1 Low minimum capital requirements 24 hours 5.5 days of trading Transparency

19. Forex Fundamentals Trade Balance Wealth Deficit/surplus Interest Rates Geopolitics

20. Conclusion “Do not put all your eggs in one basket”

21. Questions