Always follow discipline in trading / investing

It is essential for a Sub-Broker to offer All products together while opening an account.  Equity  Commodity  Currency By doing this the  Client risk is diversified with higher ROI probability with minimum risk  SB has 3 avenues of revenue generation  SB can collect higher margin in 3 products than a single product  Consistency in revenue generation in case a client witnesses losses in one segment, then the other two segments provide consistent revenues What to offer a Customer and why?

Benefits of Diversified Business for SB’s  Turnover per trade is higher in commodities when compared with other segments resulting in higher revenue per client  Opportunity to hedge inter and intra segments  Helps in client retention by avoiding client moving to other service provider, if a product not on offer and increasing client shelf life  14 hours market provides more opportunities of entry and exits in a day for clients of SB’s

SB Cost VS Revenue Analysis without Commodity and Currency Rs in thousands

SB Cost VS Revenue Analysis with Commodity and Currency Rs in thousands

I want to trade in Commodities with minimum risk, Can you help me??? Sure Sir.. We will guide you in this process.. Currency Equity Commodity

Yes sir.. Let me take you through a brief presentation on Commodities.. Thanks a lot.. Can you provide me more information about Commodities trading…?

What is Commodities Trading? Buying & Selling of Commodities on Exchange platform in an organized electronic format by depositing a pre-defined margin, to take advantage of daily price volatility.. E.g. Gold, Silver, Crude, Sugar, Soya bean etc

Precious Metal GoldSilver Base Metal CopperZincLeadNickelAluminiumSteel Energy Crude OilNatural Gas Agri WheatChanaSoya OilSoya BeanJeeraTurmeric Exchange Traded Commodities Classification

Factors Affecting Commodity Prices  Demand-Supply situation  Government Trade Policies  Global economic situation  Currency  Geo-political tensions  Market sentiments  Investment Funds  Weather dynamics  Seasonal cycles

Standardized Contracts Transparency and Fair Price Discovery Online/Off line Trading platform Seasonality Patterns Lower Margins Protection against inflation No scope for Manipulation Wide ParticipationPure Economics Benefits of Commodities Trading

Easy to understand Option of physical delivery Linked to global markets 14 hours of market Easy access to information Other benefits of Commodities trading

Market Timings and Margin Money  Monday to Friday am to / 11:55 pm  Saturdays 10:00 am to 2:00 pm (only Agri commodities).  Clients participating in equity can also participate in commodities simultaneously.  In major Commodities, margin requirement is 5 – 8 %

Can Hedge Inflation with Gold Gold prices normally move up during rising inflation as rupee depreciation results in rise in almost all commodities.

Nature of Commodities Seasonal commodities available for trading in the market Seasonal Commodities are positively & negatively correlated within & outside the group Correlation Weather influences the commodity market to a large extent Weather Response to geo political tensions, inflation, recessions etc. Eg-GOLD Economic

Lot & Contract System  Lot : Minimum quantity to be purchased or sold.  Margin system : Minimum Amount to be invested.  Contract : Time period  Future date Contract system

Trading Opportunities… Speculators can use different strategies to take advantage of rising and declining prices. “Going Long,” “Going Short” Pure Trading Investors can build and diversify their portfolio As an Investment Spreads involve taking advantage of the price difference between two different contracts of the same commodity Calendar Spread Trading Inter-exchange – NCDEX and MCX Spot – Futures (Cash and Carry) Arbitrage Opportunities

Scope in Commodity futures market

Major Indian Commodity Exchanges Multi Commodity Exchange (MCX) National Commodities & Derivative Exchange (NCDEX) National Multi Commodity Exchange (NMCE) Ace Derivatives & Commodity Exchange ICEX UCX Regulatory Authority Forward Market Commission (FMC) under the control of Ministry of Finance

Major International Commodity Exchanges  New York Mercantile Exchange (Nymex)  Chicago Board of Trade (CBOT)  London Metal Exchange (LME)  Chicago Mercantile Exchange (CME)  Commodity Exchange (COMEX)  Tokyo Commodity Exchange (TOCOM)

Contribution in Global landscape Global Vs. India Global commodity has relatively long history India Commodity futures, though active since 19 th century was banned later in 1970’s Commodity volumes surged significantly after re-launch in MCX emerged as world's largest exchange in silver and gold futures, second largest in copper, natural gas futures, and the third largest in crude oil futures in 2012.

Commodities Exchange Daily Turnover (in cr)

Product Specification Metal and Energy CommodityLot SizeRate on ScreenTick SizeProfit or Loss / Tick Gold 1 KgRs. / 10 GmsRs. 1Rs. 100 Gold Mini 100 GmsRs. / 10 GmsRs. 1Rs. 10 Silver 30 KgRs. / KgRs. 1Rs. 30 Silver Mini 5 KgRs. / KgRs. 1Rs. 5 Silver Micro 1 KgRs. / KgRs. 1 Copper 1 MTRs. / KgRs. 0.05Rs. 50 Crude oil 100 BBLRs. / BBLRs. 1Rs. 100 Lead 5 MTRs. / KgRs. 0.05Rs. 250 Aluminum 5MTRs. / KgRs. 0.05Rs. 250 Zinc 5MTRs. / KgRs. 0.05Rs. 250 Natural Gas 1250 mmbtuRs. / 1mmbtuRs. 0.10Rs. 125 Nickel 250KgRs. / KgRs. 0.10Rs. 25

Product Specification Agri Commodities CommodityLot SizeRate on ScreenTick SizeProfit or Loss / Tick Soya bean10 MTRs. / QuintalRs.0.50Rs. 50 Refined soya oil10 MTRs. / KgRs.0.05Rs. 50 RM seed10 MTRs. / QuintalRs. 1Rs. 100 Chana10 MTRs. / QuintalRs.1Rs. 100 Maize10 MTRs. / QuintalRs. 1Rs. 100 Wheat 10 MTRs. / QuintalRs. 1Rs. 100 Guarseed1 MTRs. / QuintalRs. 10Rs. 100 Pepper1 MTRs. / QuintalRs. 5Rs. 50 Turmeric5 MTRs. / QuintalRs. 2Rs. 100 Jeera3 MTRs. / QuintalRs. 2.5Rs. 75 Sugar10 MTRs. / QuintalRs. 1Rs. 100 Potato10 MTRs. / QuintalRs. 1Rs. 100

Risk and Return of Commodity Futures  Hedge against inflation, offering diversification in a portfolio.  Value chain participants can lock in a price using commodity derivatives, to manage their commodity price risk.  Commodities offer advantages in the longer term horizon.  Historically, commodities have exceeded returns than stocks. Risk

Indian Gold Prices v/s Rupee Buy MCX Gold December contract between – 29200, SL , Target – 30500

10 Years Gold & Silver price fluctuation

F&O and Commodities Strategy F & OCommodityF & OCommodity 1 lots Nifty buy1 lots GoldM Buy5 lots Nifty buy5 lots GoldM Buy (Margin)14000 (Margin) Case 1 Nifty Goes UPGold M Falls MarginallyNifty Goes UPGold M Falls Marginally ProfitMarginal LossProfitMarginal Loss Case 2 Nifty Goes DownGold M will Go UPNifty Goes DownGold M will Go UP LossProfitLossProfit 1 lot Nifty : 3,00,000 contract value needs to be hedged with equal amount of Gold by taking same position, I.e. 100 grams gold with contract value of 2,95,000/-. Equal value of Currency can also be hedged in the same way (for 1 lot gold mini worth Rs. 3 lacs approx 5 lots of USDINR).

Double on SL Strategy Commodity Qty / lotsRisk per lotReward per lot ResultProfit / Loss Silver M / Gold M SL triggered-500 Silver M / Gold M SL triggered-1000 Silver M / Gold M SL triggered-2000 Silver M / Gold M Target8000 Silver M / Gold M SL triggered-500 Silver M / Gold M Target2000 Silver M / Gold M SL triggered-500 Silver M / Gold M SL triggered-1000 Silver M / Gold M SL triggered-2000 Silver M / Gold M Target8000 Silver M / Gold M SL triggered-500 Silver M / Gold M Target2000 Silver M / Gold M SL triggered-500 Result37SL = 9, Target = 4Result = profit

Gold special call strategy Terms of strategy :  Daily 3 calls on Gold at 10:30 am, 3:30 pm and 7:30 pm.  Risk reward ratio of 1 : 2.5 (30-35 Rs. SL and 75 to 85 Rs target) Probable results per day Timing :30 AMSL Target :30 PMSL Target :30 PMSLTarget Total Profit / Loss

Gold special call strategy Guidelines for clients who intend to take this facility: Calls will be sent only on mobile phones in the form of SMS. Clients are advised to maintain strict SL and Targets advised as per call with no modification in risk reward ratio. Quantity / lots should be same for all 3 calls during the day. Participation in all 3 calls is recommended. No carry forward of position is advised. Every position initiated must be cleared before the next call timing. Client is solely responsible for all the Profits / losses arriving from this type of trading. No PMS to be allowed.

Trading strategy for Nifty and Gold combo Nifty / Gold Strategy NiftyGold 1 lot Nifty buy1 Lot Gold Mini buy 1 lot Nifty Sell1 lot Gold mini Sell This strategy helps the client to minimize his risk, as if client buys 1 lot Nifty (approx 3 lac contract value), and if rupee depreciates the Nifty falls and client starts loosing money, the losses to a large extent can be covered by taking a buy position in 1 lot Gold mini (approx 3 lac contract value) as Gold prices move up on rupee depreciation and vise versa for a sell position in Nifty.

Type of Charges (Cost per crore)MCX Commodity SegmentNCDEX Commodity Segment Exchange Transaction Fee (In Rs.) Commodity transaction tax (CTT)* In Rs. 500 Stamp Duty * (Maharashtra) (In Rs.) 100 Service Tax at 12.36% (In Rs.) Total Levies Brokerage Per cr2000 Total Cost (In Rs.) Segment wise cost per crore * The CTT is applicable on sell side at 0.01% for all metal, base metal, energy and Processed agriculture commodities. It is NOT applicable on other than processed commodities like Chana, Soya bean, Jeera, Pepper, Turmeric, Guarseed, Potato, cardamom, etc… * The stamp duty is applicable as per respective state norms.

Process of Delivery at Exchange  Client who wish to give/take delivery at exchange have to submit Delivery Request to “Angel” within stipulated time line as per contract nature.  Deposit of commodity in “Angel” A/c at WH before giving Intention request.  Transfer of Original Warehouse Receipts (WHR) and Quality certificates (Q.C) to CSO before two days of giving of Intention request.  Deposit margins as per Angel’s policy for delivery trade.  CSO will mark buyer/ seller delivery request at exchange as per intention and delivery (WHR) received from customer.  Allocation of delivery to buyer on base or default location. Even in case it does not match with preferred location, such buyer will be bound to take delivery.  Rejecting of delivery request will happen under the following circumstances: (i)Non availability of open position. (ii)Non-receipt of delivery Intention request within specific time frame. (iii)Non-receipt of funds / Commodities

Compulsory Delivery Settlement Process:  Deposit of Commodity at warehouse (Before placing intention)  Submission of delivery intention letter (T-2 day)  Delivery Marking to the Exchange (T day)  Settlement of commodity pay-in (T+2 day)  Settlement of Fund Pay-out (T+2 day)  Settlement of Quality Premium/Discount (T+3 day)  Settlement of Excess/ short quantity / Close out Qty (T+3 day)  Settlement of VAT / Sales tax (T+5 day)  Settlement of Invoice (T+7 day)  Lifting of Delivery from Warehouse (As per client’s requirement)

3 Phases of Client Acquisition Phase 1 :- Near & Dears Market 1.Family, Friends, Colleagues etc can be easily targeted. 2.Explain about the new venture by meeting & mailers. 3.Cross sell all products. 4.The list should be more then 250 peoples & should be exhausted in 3 months period. Phase 2 :- Refernces Market 1.Customer Satisfaction leads to references of new clients by the way of Good service, Timely execution etc. 2.Arrange for regular meetings, seminars, Events with ANGEL’s support. 3.These references will boost for next 3 months. Phase 3 :- Direct Sales 1.Recruit & Training of Sales Team 2.References leads can be given to them 3.Business Development by the ways of like Canopy Activities at nearby Malls, ATM’s, Big Complexes etc. Distributing Marketing Materials etc. 4.Various Lead generation Activities can be carried out.

Angel Commodities Research Fundamental – Daily, Weekly, Monthly Daily - Metals and Energy Report Daily – Agri Commodities Daily Evening Report – Metals and Energy Weekly Tracker Monthly – Agri Commodities Report Monthly – Bullion, Base Metals and Energy Fundamental Special Reports RBI policy review ECB update FOMC update Diwali Bullion Report Seasonal Agri Reports MSP update Advance estimates update Monsoon Report Sowing progress Report High impact US economic data Technical – Daily, Weekly, Monthly Daily – Agri Tech, Metal and Energy Tech and Currency Weekly Tracker – Agri, Non-Agri and Currencies Technical Special Reports Agri Technical Report Non-Agri Technical Report Currency Technical Report Spread Tracker Special Festival Report (Akshaya Tritiya, Diwali) Knowledge Series – Annually

About Angel Commodities Broking Pvt Ltd Leaders in Commodity Retail broking business. UTV Bloomberg Award (Broker with best Commodity Research of the year) (2011 & 2012) ZEE business award Best Technical Award (2010) Frequent Edu-camps, Seminars & Awareness programs In depth research support. All in one software and Mobile trading platform Relationship Management.

Published in FY © Angel Broking Angel Broking All rights reserved. Corporate Office: 6 th Floor, Ackruti Star, Central Road, MIDC, Andheri (East), Mumbai – , India Tel.: +(91) The information given herein or in the accompanying material is intended only to be general information relating to the organization, structure, functions, areas of business, potential and scope of Angel Group of companies, which expression may as the context requires include the holding company, subsidiary companies and their affiliates, or any or all of them, variously referred to as “Angel Broking”, “Angel Group”, “Angel” or the “Group” or the “Company” and while every effort has been made to ensure the accuracy and completeness of the information given, neither the group companies, nor any of their Directors, Members, employees, servants or agents make any guarantee or assume any liability for any errors or omissions in the information furnished. It is further made clear that nothing stated or anything omitted to be stated in this document can constitute a ground for any claim, demand or cause of action against the company or any of its Directors, Members, employees, servants or agents. Thank You