A purchase of a Premium Security allows you to make a fixed investment to gain a leveraged exposure to an underlying financial instrument at its current market price.

The embedded leverage in the Premium Security contract means you have the potential of making higher returns, or losses, when compared to trading the cash value of the underlying instrument. However, similar to purchasing an option, losses are limited to the amount invested. Unlike option trading the Premium Security has no expiry and you are free to choose when you want to close the position (subject to the Terms of Business).

You can buy and sell Premium Securities by investing only a fraction of the full cash value of the instrument being bought and sold. This is called the Investment Amount.

Investment Amounts are in your account’s base currency. If you have a US dollar account, your Investment Amounts will be shown in US dollars.

The formula for calculating Investment Amounts for FX trades =

Trade Quantity/Leverage factor*

The formula for calculating Investment Amounts for trades other than FX =

(Trade Quantity x Trade Price)/Leverage factor*

We do not require you to pay up the full contract value. A pre-fixed leverage factor will be applied to different products. Leverage factors vary between products.

Investment Amounts are all converted back into the base currency of the account using exchange rates at the time when you enter the trade.

The leverage factor of each instrument can be found in the market information window in the trading platform. You can gain access to this market information window by clicking on the blue ´i´ icon which can be found on the market price window.

You will also be able to find the leverage factor in the Fees List that was given to you when you opened a Premium Security account.

When you buy a Premium Security, you do not actually own the underlying asset. However, you are entitled to some of the benefits, such as dividends, rights issues etc, as if you were an owner of the underlying asset. However, you will not receive any voting rights on equities.

There are two main ways in which you can profit from investing in Premium Securities:

1. Buy at one price then sell at a higher price

2. Sell at one price then buy at a lower price

The two main ways to lose while investing in Premium Securities are to:

1. Buy at one price then sell at a lower price

2. Sell at one price then buy at a higher price

All Premium Securities are marked to market on a timely basis. You will be able to find out the "net worth" of your Premium Securities by looking at the valuation. Valuation is calculated by adding profit (or subtracting losses) to the Investment Amount.

Sales proceeds are the valuation of your Investment Amount at the time you close your position. When you close your position, we will calculate your sales proceeds and credit these sales proceeds back to you.

Overnight pricing adjustments are one of the costs of trading Premium Securities. These adjustments are a result of financing for overnight positions as well as corporate actions.

Premium Securities utilise leverage. The leverage embedded in each Premium Security contract varies depending on the underlying instrument bought or sold. For each day you hold the Premium Security contract, we will adjust the price to account for any financing of the nominal position. These financing cash flows (debits or credits) are applied to the Premium Security contract automatically and are reflected in the price adjustment at the end of the trading day (assuming the position is not closed before the end of the day).

Typically if you have a buy position with your Premium Security contract (being leveraged), you will incur financing charges – these charges are reflected in the adjustment of the trade price at which you first entered to trade. Similarly if you hold a sell position with your Premium Security contract (being leveraged) you may receive financing credits – again these credits are reflected in the adjustment to the traded price.

Corporate actions will similarly affect the trade price and adjustments will be made in a similar way depending on whether these cash flows are debits or credits

Real time profits/losses (for intraday positions)

Sell Position = Quantity x (Trade Price – Current Market Buy Price)
Buy Position = Quantity x (Current Market Sell Price – Trade Price)

Real time profits/losses (for positions held overnight)

Sell Position = Quantity x (Adjusted Trade Price – Current Market Buy Price)
Buy Position = Quantity x (Current Market Sell Price – Adjusted Trade Price)

Profits/losses for intraday positions (where a stop loss order is triggered)

Sell Position = Quantity x (Trade Price – Price at which stop loss order is executed)
Buy Position = Quantity x (Price at which stop loss order is executed – Trade Price)

Profits/losses for positions held overnight (where a stop loss order is triggered)

Sell Position = Quantity x (Adjusted Trade Price – Price at which stop loss order is executed)
Buy Position = Quantity x (Price at which stop loss order is executed – Adjusted Trade Price)

Profits/losses for intraday positions (where a limit profit order is triggered)

Sell Position = Quantity x (Trade Price – Limit profit order price)
Buy Position = Quantity x (Limit profit order price - Trade Price)

Profits/losses for positions held overnight (where a limit profit order is triggered)

Sell Position = Quantity x (Adjusted Trade Price – Limit profit order price)
Buy Position = Quantity x (Limit profit order price - Adjusted Trade Price)

If you wish to reduce the leverage applied on one of your positions, you can do so by increasing the Investment Amount allocated to that Premium Security. This will allow you to sustain larger and more volatile negative movements. You can do this via the unique top up functionality.

By topping up the Premium Security Investment Amount, the stop loss level will be adjusted so that a larger negative market movement can be sustained. This will also have the effect of increasing your possible losses to the larger Investment Amount.

When you top up cash into your Investment Amounts, you are in fact reducing the leverage on your position. If you wish to hold a full cash position, you can do so by topping up cash to the Investment Amount (up to the full cash amount).

By topping up the Premium Security Investment Amount, the stop loss level will be adjusted so that a larger negative market movement can be sustained. This will also have the effect of increasing your possible losses to the larger Investment Amount. You are also in fact reducing the leverage on your position. If you wish to hold a full cash position, you can do so by topping up cash to the Investment Amount (up to the full cash amount)

When you are holding a "long" position on an equity Premium Security, your dividend will be adjusted into your traded price. After the adjustment, you will be buying at a lower price. The adjustment is equivalent to the net dividend payment due on the underlying shares multiply by a weighting factor. If you are holding a “short” position on an equity Premium Security, you need to pay the dividend. The dividend will be adjusted into your traded price and you will be selling at a lower price.

There are two costs of trading Premium Securities. The first is overnight pricing adjustments. Premium Securities utilise leverage. The leverage embedded in each Premium Security contract varies depending on the underlying instrument bought or sold. For each day you hold the Premium Security contract, we will adjust the price to account for any financing of the nominal position. These financing cash flows (debits or credits) are applied to the Premium Security contract automatically and are reflected in the price adjustment at the end of the trading day (assuming the position is not closed before the end of the day).

Typically if you hold a buy position with your Premium Security contract (being leveraged), you will incur financing charges – these charges are reflected in the adjustment of the trade price at which you first entered to trade. Similarly if you hold a sell position with your Premium Security contract (being leveraged) you may receive financing credits – again these credits are reflected in the adjustment to the traded price.

The second cost of trading Premium Securities is indirect and is the dealing spread. The spread, also known as the dealing spread or the sell/buy spread, is the difference between the buy and sell rates at which you can buy and sell the Premium Securities.

The adjusted trade price is the trade price of the Premium Security adjusted for any overnight pricing adjustments.

The formula for calculating financing for index/commodity/equity positions is:

closing price x interest rate (after haircuts)
360 or 365 days (depending on market practices)

The formula for calculating financing for FX positions is:

closing price x net interest rate differentials (after haircuts)
360 or 365 days (depending on market practices)

If you hold indices and commodities positions overnight, your trade price will be adjusted up, regardless of whether you are long or short. If you are holding an equity position, your trade price will be adjusted according to the local practice of the equity. E.g. If you have an equity position in US share, your trade price will be adjusted up regardless of whether you are long or short. If you have a short equity position in a Singapore share, your trade price will be adjusted down instead.

Whether or not financing is added to or deducted from your trade price for overnight FX positions will depend on the FX interest rate differential and haircuts. If the difference in interest rates of the currency pair (after haircuts) is negative, anyone who is long or short will have their trade price adjusted up.

If the difference in interest rates of the currency pair (after haircuts) is positive, anyone who is long or short will have their trade price adjusted down.

A haircut is a small mark-up on the interest rate used to calculate overnight financing. This mark up is an income shared between Spread Co and Anand Rathi.

If you hold long equity positions, any dividends equivalent will be subtracted from your trade price. If you hold short equity positions, any dividends equivalent (multiply by a weighting factor) will be subtracted from your trade price.

Any positions held overnight will be subjected to overnight pricing adjustments. These overnight pricing adjustments will be adjusted into your trade price. The cut off time for overnight positions is 10pm (London time).

Premium Securities trading is commission free.

Unlike traditional CFDs, you will not get margin calls if you trade Premium Securities. When you enter into a CFD position, you will be debited an initial margin which is an amount equal to a percentage of the position size. If the market moves against you, you can lose much more than your initial margin.

When you buy or sell Premium Securities, your investments will be allocated an Investment Amount. If the market moves against you, your maximum losses will be limited to this Investment Amount (as increased by any top ups that you have made)

You may hold on to your Premium Securities up to period of three years provided your stop loss is not triggered.

You can close your Premium Securities by submitting an opposite trade of the same quantity in the same market. For example, in order to close a buy position of 100 Microsoft Premium Securities, you will need to sell 100 Microsoft Premium Securities.

No you can´t hold simultaneously long and short position in the same market at any one time.

When you buy or sell Premium Securities, your trades will be allocated an Investment Amount. If the market moves against you, your maximum losses will be limited to this Investment Amount (as increased by any top ups that you have made).

When you enter into a CFD position, you will be debited an initial margin which is an amount equal to a percentage of the position size. If the market moves against you, you can lose much more than your initial margin.

Futures trading is simply the buying or selling a specified quantity of a product with a specified delivery time in the future at a pre-determined price. Futures contracts are usually traded on an exchange and have a specified expiry date.

Premium Securities are not traded on an exchange and there is no expiry date for the contract. Investors can hold on to their Premium Securities for a period of up to three years providing the stop losses are not triggered.

There is no order book concept when you trade in Premium Securities. Premium Securities are traded over the counter and not off exchange. Spread Co, who is a market maker, will quote both a buy and a sell price for you to trade on. Spread Co is therefore the counter party to the trades.

An order is placed above or below the current market price. The order will only be filled (done) when the market price trades to the order price.

A trade is filled (done) immediately based on current market sell and buy prices.

Contingent (if done) and limit profit orders are available on our trading platform. You can select the time frame in which you wish to work your orders.

A primary order is an order placed with the intention of opening a new position. A linked order is a limit profit order placed with the intention of locking in your profits on an existing open position.

On the trading platform, click on the ´Investments´ panel, select the open positions in which you wish to place the linked order and click on the ´create linked order´ icon. Alternatively, you can call our dealing desk at +91 22 66266465 to place a linked order.

When you buy or sell Premium Securities, you are guaranteed to not lose more than the Investment Amount that is paid by you on the relevant Premium Securities. A standard stop loss order is automatically created whenever you open a position. When your Investment Amount falls more than a certain percentage, this stop loss order will be triggered and your open position will be closed.

A contingent order, also known as an ´if done´ order, consists of a primary order and a limit profit order. You would first need to place a primary order, which can be a stop or limit order. A primary order is used to open a position. After placing the primary order, you place another limit profit order which will link to this unexecuted primary order. If this primary order is executed, the limit profit order will be active. If this limit profit is executed, the position will be closed.

No, it is not necessary to place a limit profit order.

When you create a primary order, you are only allowed to place a limit profit order. When your primary order is executed, a stop loss order will be automatically created to protect your Premium Security.

If the market sell (bid) price trades to the price of a sell order or lower, the sell order will be executed. If the market buy (offer) price trades to the price of a buy order or higher, the buy order will be executed.

A sell stop loss order is executed at either the stop loss price or lower and a buy stop loss order is executed at either the stop loss price or higher. Limit profit orders are executed at the limit profit order price.

Stop loss orders are filled at your stop loss order prices or market prices. If you have initially placed a stop loss order to sell 10,000 GBP/USD at 1.9755 and market traded through to 1.9753/56. Your stop loss order will be filled at the best market sell (bid) price which is 1.9753.

No. Your order is either filled entirely (done) or rejected.

In the event that the market gaps up or down and we are unable to close your Premium Security at the standard stop loss level, we will guarantee that you will not lose more than the Investment Amount you have paid to buy or sell the Premium Security. We create a guaranteed stop loss on your position for this reason. When the Investment Amount is 0, the position will be closed out with this guaranteed stop loss.

When you open a position, only one standard compulsory stop loss order and one guaranteed compulsory stop loss order is created. Contingent, primary and limit profit orders are all optional orders.

In the open positions panel of the trading platform, the indicated stop loss price is the standard stop loss order price. Guaranteed stop loss prices are not displayed on the trading platform. In any case, when the valuation of the Investment Amounts is equal to zero, any open position will be automatically closed.

When the market trades to the indicated standard stop loss price, the standard stop loss will be triggered and the position linked to this stop loss order will be closed.

The formula used for calculating a standard buy stop loss price is:

[((Adjusted Investment Amount in currency of Referenced Investment / Trade Quantity) + cumulative overnight pricing adjustment per unit) x Stop Loss Percentage] + Trade Price

The formula used for calculating a standard sell stop loss price is:

Trade Price – [((Adjusted Investment Amount in currency of Referenced Investment / Trade Quantity) + cumulative overnight pricing adjustment per unit) x Stop Loss Percentage]

*When the Investment Amounts falls more than a certain percentage, the standard stop loss will be triggered. This percentage varies from instrument to instrument.

When you hold a position overnight, your standard stop loss prices will be adjusted for overnight pricing adjustments.

The standard stop loss percentage of each instrument can be found on the market information window in the trading platform. You can gain access to this market information window by clicking on the blue ‘i’ icon which can be found on the market price window.

You will also be able to find the standard stop loss percentages in the fees list that was given to you at the time when you opened a Premium Security account.

You can amend the standard stop loss order price by topping up cash into your initial Investment Amount. This top-up feature in the trading platform will enable you to move your standard stop loss prices further away from the current market price.

No, you cannot amend or cancel an order if it is already executed.

Yes, you can amend or cancel a contingent order if the market price has not reached the order price.

The purpose of an order placing distance is to prevent your orders being triggered while you are in the midst placing them. This can happen especially when markets move quickly. In order to prevent this from happening, we input order placing distance so as to allow you to safely place your orders at least a few pips away from the market.

Good till cancelled (GTC) denotes that as long as the market price did not reach the order price, your order will continue to be active until you decide to cancel it.

Good till end of day denotes that as long as the market price did not reach the order price, your order will continue to be active until the market closes.

Good till date/time denotes that as long as the market price did not reach the order price, your order will continue to be active until the date and time that has been specified by you.

Foreign Exchange (FX) is the buying and selling of one currency in terms of another for settlement in 2 business days. E.g. Buying USD/JPY means to buy US dollars and sell Japanese Yen at an agreed spot exchange rate.

Currencies are always quoted one against the other. When you buy or sell foreign exchange, you always buy one currency while simultaneously selling another at an exchange rate. A currency’s exchange rate can only be determined if it is compared to another currency.

The base currency is the first currency in the currency pair and the term currency is the second currency in the currency pair. For USD/JPY, the base currency is the USD and the term currency is JPY.

A direct FX quote is an FX quote where USD is quoted as the base currency in the pair. Examples of direct FX quotes are USD/JPY, USD/CHF and USD/CAD. An indirect FX quote is an FX quote where USD is quoted as the term currency in the pair. Examples of indirect FX quotes are GBP/USD, EUR/USD and NZD/USD.

A cross FX quote is an FX quote where USD is not quoted in the currency pair. Examples of crosses are GBP/JPY, EUR/JPY and NZD/CHF.

Premium Securities utilise leverage. The leverage embedded in each Premium Security contract varies depending on the underlying instrument bought or sold. For each day you hold the Premium Security contract, we will adjust the price to account for any financing of the nominal position. These financing cash flows (debits or credits) are applied to the Premium Security contract automatically and are reflected in the price adjustment at the end of the trading day (assuming the position is not closed before the end of the day).

The financing interest rate is based on the interbank overnight interest rate plus an interest rate haircut applied by Spread Co and Anand Rathi. An example is LIBOR for GBP positions and USDLIBOR for USD positions.

You can trade FX from Sunday 2200 hours to Friday 2200 hours (GMT).

A bid/offer (sell/buy) spread, is the difference between the prices at which you can purchase and sell the Premium Securities. If the current market price for silver is 18.75/85, the spread is 18.85 – 18.75 = 0.10 (10 points).

Spread sizes vary by instrument depending on:

• the liquidity of the underlying instrument
• the volatility of the underlying instrument
• the amount of freely traded shares that exist for the relevant underlying instrument.

The size of the spread represents how much the market must move in your favour before you can begin to make a trading profit.

Yes. You can purchase and sell off your Premium Securities within the same day.

The minimum trade size depends on the market, and is typically one unit for any share, index or commodity and 10,000 units for foreign currencies.

The maximum contract value will depend on the amount of cash you have in your trading account, and is also subject to the maximum contract size available for the instrument in question.

For example, you have $5,000 in your trading account and you would like to buy Microsoft at $24.00. The Investment Amount required for one Premium Security Contract is (1 x 24)/10 = $2.40.

As you have $5,000 in your trading account, you can buy or sell up to (5,000/2.40) = 2,083 Microsoft shares as a Premium Security.

The long and short exposure limit of each instrument can be found on the market information window in the trading platform. You can gain access to this market information window by clicking on the blue ´i´ icon which can be found on the market price window.

We have a wide range of markets which include indices, equities, commodities and foreign exchange products available on our trading platform.

No, you do not need a computer in order to trade. Anand Rathi has a dedicated 24 hour dealing desk. You can call our dealers, who will be able to place trades for you over the telephone on your instructions.

The trading hours of each instrument can be found on the market information window in the trading platform. You can gain access to this market information window by clicking on the blue ´i´ icon which can be found on the market price window.

Most stock exchanges operate on a matched bargain or order driven basis. When a buyer's buy meets a seller's sell or vice versa, the stock exchange's matching system will decide that a deal has been executed. In an Exchange traded environment, orders are often being filled partially due to quantity availability.

In OTC trading, there is no centralised physical location. A market maker who is a firm or bank will quote both a buy and a sell price in financial instruments. A market maker is the counterparty to the trades of all the clients. Hence, the client's loss is the market-maker firm's profit and vice versa. In an OTC environment, orders are filled fully when the order price becomes the market price, regardless of quantity.

Saturn TRADER is Spread Co’s in-house trading platform which has been designed in two different formats. One is a web-based version and the other is a downloadable version.

In terms of functionality, there is not much difference between the web-based version and the downloadable version of the trading platform. You can place orders/trades and see market prices on both platforms. The look and feel of both the web-based version and the downloadable version of the platform is designed to be very similar.

The web-based version of the platform is designed for our clients who travel frequently. This version can be accessed from any PC or Macintosh computer running a web browser that supports the flash player 9.

Yes. If you placed a trade or order in the web-based version of the platform, you will be able to see that trade or order if you logged into the downloadable version of the platform. You will be able to see all the trade activities that were performed on one version of the platform in the other version.

No you cannot log into both the web based platform and the downloadable version of the platform at the same time. If you attempt to log into the downloadable version of the platform while you are logged in to the web based version, you will be logged out of the web based version of the platform.

You can install Saturn TRADER from our educational CD or download the software from our website http://premiumsecurity.anandrathi.com/support.aspx

Go to http://premiumsecurity.anandrathi.com and in the top right hand corner of the website, enter the username and password provided to you. The web based version of the trading platform will be launched.

To get help on our trading platform, please go to: http://premiumsecurity.anandrathi.com/training_videos.aspx and watch the user guide videos that were specially created for you. If you have any further questions, please feel free to call us on +91 226 6266 479 or contact us here

You do not have to pay to use the trading platform. It is given to you free of charge if you have an account with us.

At the moment the trading platform is available in English, Mandarin, Japanese and Dutch

First, please check your system meets the minimum system requirements and that your computer can access other web pages on port 80 (HTTP) and 443 (HTTPS). If you are still having difficulties, please call our Helpdesk on +91 2266 266 478.

Windows 98, Pentium III, 256MB Ram, 100Mb free Hard Disk Space, Microsoft .NET version 2 framework and Internet Connection. A broadband connection is highly recommended. Your screen resolution should be set to the highest possible setting, depending on your screen size.

The system is compatible with any web browser so long as you have Adobe Flash version 9 installed.

Please click here to find out which version of Adobe Flash is installed on your computer.

Please click here to download the latest Adobe Flash player.

The Windows download client will not support Mac OS or Linux. However Flash Player 9 is available for both operating systems which will run the online version of Saturn TRADER. For more information please see: http://www.adobe.com/products/flashplayer/.

No. All your account history is securely stored on our server allowing you to login from any other location without losing any information.

Yes, in order to install the trading platform and flash player, you will require local administrative rights on your computer.

No, it is not necessary to disable/allow the pop-up blocker for trading. The software opens in a new browser. However, to access statements or reports on your account through the web based version of the trading platform, you will need to allow pop-ups from ours trading websites.

Google tool bar: To allow pop-ups, log on to the Anand Rathi´s trading website and click the Pop-up Blocker button. The button text will change to read ´Pop-ups OK´ , indicating that the Pop-up Blocker has been disabled on that site. Further details are available at: http://www.google.com/support/toolbar/bin/answer.py?answer=9160&topic=11761

Yahoo tool bar: 1. Click the Pop-Up Blocker menu. 2. Select ´Always Allow Pop-Ups From´. 3. Select the trading site from the ´Sources of Recently Blocked Pop-Ups´ list. 4. Click ´Allow´. Further details are available at: http://help.yahoo.com/l/us/yahoo/toolbar/features/pop-upblocker/basic/pub-07.html

You may also select ´Tools´ from your internet browser, then select ´Pop-up blocker´ and select ´Turn off pop-up blocker´.

The installation process should take no longer than 5 minutes, depending on your internet connection and pc specifications.

Once the trading platform starts to load, it will automatically check for updates and automatically install any which are required. Once the web based version of the trading platform starts to load, it will automatically install any updates for the platform to start. On occasions third party software may be required, at which time you will be prompted to follow the on-screen instructions.

Should I disable or modify my firewall and anti-virus application settings in order to use the trading platform?

Providing your proxy allows connections to the Internet over ports 80 (HTTP) and 443 (HTTPS), you should have no problems accessing the trading platform.

The trading platform operates in a completely secure environment. We employ 128 bit SSL encryption, which is the most secure encryption available today.

Daily statements are sent to you by email everyday. Monthly statements are sent to you at the end of each month. You can also retrieve copies of daily and monthly statements from the trading platform.

If you did not receive a statement, please call +91 22 66266465 or email dealing.ps@rathi.com. Alternatively, you can always retrieve a copy of the statement from the trading platform.

You will be able to see your executed trades, open positions, currency ledger activities, account summary and valuation.

To retrieve a copy of the daily or monthly statement user guide, please go to http://premiumsecurity.anandrathi.com/userguides.aspx. Alternatively, please call +91 22 66266465 or contact the dealing team here.

The end of day process starts at 10pm London time. Transactions that were executed before this time will be reflected in the statement sent to you on the next day. Any trades that are executed after 10pm London time will be reflected in the statement sent to you 2 days later.

If you do not think that the information shown in a statement is correct, please contact us within 2 days of the statement date by calling +91 22 66266465 or emailing dealing.ps@rathi.com. If you do not contact us within 2 days of the statement date, you will be deemed to have accepted the transactions(s) listed in the statement.

All your transactions will be shown in your account´s base currency.

To see a copy of the daily or monthly statement user guide, please go to http://premiumsecurity.anandrathi.com/userguides.aspx. Alternatively, please call +91 22 66266465 or email the dealing team here.