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ANGLORAND FINANCIAL SERVICES GROUP. Contracts for Difference Platform (CFD’s) ART Investor. Derivatives Trading. - PowerPoint PPT Presentation
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ANGLORAND
FINANCIAL SERVICES GROUP
• Contracts for Difference Platform (CFD’s)
• ART Investor
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.
ANGLORAND FINANCIAL SERVICES GROUP
Anglorand Futop (Pty) LtdAnglorand 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.
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 (SSF’s) 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
ANGLORAND FINANCIAL SERVICES GROUP
Anglorand Asset Managers is registered with the Financial Services Board (FSB) as aFinancial Services Provider and offers clients the ability to trade Contracts forDifference (CFD’s) on many of the stocks listed on the JSE.
CFD’s can be used in much the same way as futures to hedge a portfolio against adverseprice movements or as shorter term investments for that portion of an investor’s portfoliothat can accommodate a higher degree of risk to take advantage of similar levels of gearing tothose in the futures markets.
Unlike Single Stock Futures, CFD’s do not have expiry dates as the contract is for the difference in theshare price whenever the client’s 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.
CFD’s can be traded online by clients on Anglorand Asset Managers’ own online trading system “ART”.
When a client trades CFD’s 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
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.
ANGLORAND FINANCIAL SERVICES GROUP
Anglorand’s 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 anduses 128 bit inscription to create a secure connection.
ANGLORAND FINANCIAL SERVICES GROUP
The ART trading window is a fast, efficient and user-friendly platform for effective on-line trading.
ANGLORAND FINANCIAL SERVICES GROUP
Full, real time reports available online.
ANGLORAND FINANCIAL SERVICES GROUP
Direct access to ART’s technical analysis tools.
ANGLORAND FINANCIAL SERVICES GROUP
Direct access to Anglorand’s secure research page from the ART platform.
ANGLORAND FINANCIAL SERVICES GROUP
Direct access to Reuters headlines and news stories from the ART platform.
ANGLORAND FINANCIAL SERVICES GROUP
CONTACT DETAILSNational Phone Number: 0860 287 422
E-mail [email protected] www.anglorand.co.za [email protected] www.anglorand.com
HEAD OFFICE – GAUTENG1st Floor, Broll PlaceSunnyside Office Park32 Princess of Wales Terrace
Parktown2193
Telephone: (011) 484 7440
Fax: (011) 484 6647
BRANCH – CAPE TOWNUnit 1-4Beuno Vista Office ParkKendal RoadDurbanville7550
Telephone: (021) 975 4790Fax: (021) 976 7222