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

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 a

Financial Services Provider and offers clients the ability to trade Contracts for

Difference (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 adverse

price movements or as shorter term investments for that portion of an investor’s 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, CFD’s do not have expiry dates as the contract is for the difference in

the

share 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 DETAILS

National 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