Financial markets- An introduction 1 Section

There are several definitions of financial markets that are used in the financial services industry which describe the concept of buying or selling any financial instrument. It is important to know them but more important to understand them as they imply the same meaning. Some of the definitions of financial markets that are used are as follows:

It is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. A financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods.

Instruments in financial markets 2 Section

This chapter will brief you on the most common types of financial markets and the functions of each of them:

Financial market Capital market Money market Commodity market Insurance market Foreign Exchange Market

Function To raise medium and long term funds Facilitate the trading of commodities. Facilitate the redistribution of various risks Facilitate the trading of foreign exchange

Regulatory authority Securities Exchange Board of India Forward Market Commission Insurance Regulatory and Development Authority Foreign Exchange Dealers Association of India

To raise short and medium term funds Reserve Bank of India

Capital markets form an important source of liquidity in the financial markets. Capital markets generate the highest liquidity among all financial markets. Capital market is a market for securities which can either be through Equity or Debt and hence the two types of Capital markets are Securities market(Equity) and Bond market(Debt). The focus of this chapter will be on equity component of the Capital markets. The securities market can be further sub divided into two types namely the Primary market and Secondary market. Primary market

A company can raise funds through 2 modes namely Equity and Debt. Hence, when one studies the balance sheet of any company, the capital structure will have two components namely Equity and Debt. The market in which the company can raise funds is the primary market. In the primary market the transaction of securities is unidirectional i.e. Company sells and the investor buys. Suppose the company wants to raise funds through the equity mode, It is usually done through a public issue or an IPO(initial Public offer). The companies have to follow a well-established legal procedure and involve a number of

intermediaries such as underwriters, brokers, etc. who form an integral part of the primary market.

The process of an IPO is not important in this training program but it is important to know that the IPO of a company is done through a collaboration with an underwriter(investment banker) and through this collaboration, the company releases a prospectus known as the DRHP(Draft Red herring prospectus). In brief the DRHP states all important details of the company like the future prospects, financial valuation, inherent risks, capital structure, future revenue sources, etc. These details are extremely important to be disclosed to the public prior to raising funds as mandated by SEBI. This is lieu with the complete disclosure norms set by SEBI to protect investors from fraudulent companies.

Secondary market

Once the company lists in the primary market, the buying and selling of securities takes place between investors, traders and speculators. In the secondary market, the market action i.e. supply and demand leads to price discovery of the financial security.

A flow chart to explain the Capital market is as below:

(A) Capital Market : It have 2 types, (1) Equity (2) Debt In Equity there are 2 types, (a) Primary Market & (b) Secondary Market. In Debt There are 2 types, (a) Bonds (b) Debentures.

Financial instruments are traded under 2 main categories namely the Spot market and the futures market. Below are the few features of these 2 types of markets Spot market

A market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. Any stock trading only in the spot market has a circuit limit of either 5,10 or 20%. For example Indiabulls finance has a circuit limit of 20% which means that the price of the stock will not go above or below the 20% limit for that day. Any stock trading in the spot market does not have a lot size. For example one can buy or sell any number of shares of Reliance Industries in the spot market. Any stock trading in the spot market does not have a contract expiry. Short selling in the spot market is allowed only for intraday. No positions can be carried forward for the next day.

Futures market

A futures transaction for which instruments can be reasonably expected to be delivered in one month or less. Though these goods may be bought and sold at spot prices, the goods in question are traded on a forward physical market. Any stock trading in the futures market does not have a circuit limit. For example since Reliance Industries trades in both the spot and futures market, it does not have a circuit limit in the both the markets. Any stock trading in the futures market has a definite lot size that is set by the exchange. For example Reliance Industries has a lot size of 250 shares. Hence if one wants to buy 1 lot of Reliance

Industries, he/she has to buy a minimum of 250 shares in the futures segment. One can buy only in multiples of this lot size i.e. 250,500,750 and so on. Any stock trading in the futures market has a contract expiry which is the last Thursday of every month. In the futures market at any given point of time 3 contracts will be available to trade i.e. current month, next month and the month after next. Short selling position is allowed to be carried forward till the contract expiry in the futures segment.

Market Exchanges 3 Sections

This chapter will introduce the various exchanges that regulate the various asset classes like Equity, Commodity, Currency, etc. Equity markets in India come under the purview of nationalized exchanges namely a) BSE- Bombay stock exchange b) NSE- National stock exchange

The BSE was incorporated in July 1875 thereby making it the oldest exchange in India. It has over 8000 scrips listed on the exchange making it the largest exchange in the world. The benchmark index for the BSE is the SENSEX which comprises of 30 stocks with the highest market capitalization. Market capitalization is calculated as the price of the share multiplied by the number of outstanding shares in the market. Hence the 30 stocks in the SENSEX are large cap companies with the largest weightage given to those stocks with the highest market capitalization. The NSE was incorporated in November 1992 as a alternate exchange to the BSE but has since overtaken the BSE in terms of volumes traded. The Benchmark index for the NSE is the NIFTY which has 50 stocks with the highest market capitalization.

Under the equity segment of the market exchange there are several types of products that are traded. Below are some of the details of the products that are currently being traded in the 2 exchanges.

There are 2 types of Exchange : (A) Spot & (B) Derivatives. In Spot , there are 2 types : (a) Stock (b) Index. Derivatives also have 2 Parts : (a) Futures & (b) Options. (They are stock & Index Only)

In the 2 exchanges one cannot trade in index spot i.e. Nifty or the SENSEX but the same can be traded in futures i.e. Nifty futures and SENSEX futures. NSE- Futures and Options of stocks and indices can be traded along with individual stocks. BSE- SENSEX futures can be traded along with individual stocks. Options trading and Stock futures trading is not present in BSE. There are 2 exchages where commodity trading happens in India namely MCX(Multi Commodity exchange) and NCDEX(National Commodity and derivative exchange).

Commodity markets are quite like equity markets. The commodity market also has two constituents Spot market and derivative market. In case of a spot market, the commodities are bought and sold for immediate delivery.

In case of a commodities derivative market, various financial instruments having commodities as underlying are traded on the exchanges. Commodity future is a derivative instrument for the future delivery of a commodity on a fixed date at a particular price. The underlying in this case is a particular commodity. If an investor purchases an oil future, he is entering into a contract to buy a fixed quantity of oil at a future date. The future date is called the contract expiry date. The fixed quantity is called the contract size. These futures can be bought and sold on the commodity exchanges. The commodities include agricultural commodities like wheat, rice, tea, jute, spices soya, groundnut, coffee, rubber, cotton, etc, precious metals - gold and silver, base metals - iron ore, lead, aluminum, nickel, zinc etc, and energy commodities -crude oil and coal.

Like mentioned above there are 2 major exchanges that allow trading in commodities i.e. MCX and NCDEX. Below is the list of commodities traded in MCX. MCX have 3 parts (A) Bullions (B) Base Metals (c) Energy In Bullions, it have 2 parts : (a) Gold (b) Silver In Base Metals, it has 5 Parts : (a) Copper (b) Zinc ( c) Lead (d) Aluminium (e) Nickel In Energy, it has 2 parts : (a) Crued Oil (b) Natural Gas

The Options market is a new financial instrument which is currently being traded only in NSE.

Options can be of 2 types namely- Index and Stock options Options have similar features to futures segment where in the lot size and the contract expiry is the same as that of the stock/index future. For example Reliance Industries has a lot size of 250 in both futures and options. The expiry for an options contract is also the last Thursday of every month. Currently the index options that are being traded are Nifty and Bank Nifty options. All stocks that are traded in futures are also traded in options.

The options market will be explained in detail in the further courses.

Important data impacting Financial markets 1 Section

This chapter will throw light on some of the major micro and macro economic variables that impact the Indian financial markets. GDP- Gross Domestic Product

Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period. The GDP data is released every quarter The GDP data is released by the Ministry of Finance GDP is a very important data which shows the financial market activity for that quarter A growth in GDP number indicates a growing economy and hence is a positive sign for the Stock markets A fall in GDP growth indicates negative sentiment in the market and invariably leads to a fall in

the Stock market IIP- Index of Industrial Production IIP (Index of Industrial Production) denotes the total production activity that happens in the country during a particular period as compared to a reference period. The IIP data is released every month IIP is a very important data which shows the manufacturing activity in the economy A low IIP data indicates a slowdown in demand and hence manufacturing implying a negative sentiment on the stock market A high IIP number indicates a robust growth in the manufacturing sector indicating positive sentiment in the securities market. Inflation Inflation is a key data that shows the supply and demand activity in an economy. Inflation data is released every month The inflation is calculated through the Wholesale Price Index A higher inflation implies a high demand for goods or low of supply of goods. A lower inflation implies a low of demand for goods or a high supply of goods

Credit policy The RBI credit policy is a monthly event where in the RBI regulates the liquidity in the market with the help of several tools Some of these tools are CRR(cash reserve ratio), SLR(Statutory Liquidity ratio), Repo and reverse repo rate. CRR(Cash Reserve Ratio) is the amount of Cash(liquid cash like gold) that the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more. SLR((Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit.

A glossary of Financial terms 1 Section

A glossary of Financial terms Arbitrage The business of taking advantage of difference in price of a security traded on two or more stock exchanges, by buying in one and selling in the other (or vice versa). Averaging The process of gradually buying more and more securities in a declining market (or selling in a rising market) in order to level out the purchase (or sale) price Basis Point (BP) The smallest measure used in quoting yields on fixed income securities. One basis point is one percent of one percent, or 0.01%. Bonus A free allotment of shares made in proportion to existing shares out of accumulated reserves. A

bonus share does not constitute additional wealth to shareholders. It merely signifies recapitalization of reserves into equity capital. However, the expectation of bonus shares has a bullish impact on market sentiment and causes share prices to go up. Bid and offer Bid is the price at which the market maker buys from the investor and offer is the price at which he offers to sell the stock to the investor. The offer is higher than the bid. Buy limit order An order of buying a security with a condition that order will not be executed above the specific mentioned price. Closing Price The trade price of a security at the end of a trading day. Based on the closing price of the security, the base price at the beginning of the next trading day is calculated. Call Option This is the right, but not the obligation, to purchase shares at a specified price at a specified date in the future. See Options.For this privilege, the buyer pays a premium which would be a fraction of the price of the underlying security. You are gambling that the share price will rise above the option price. If this happens you can buy the shares and sell them immediately for a profit.If the share price does not rise above your option price, you do not exercise the option and it expires - all you have lost is the initial payment made to purchase the option. Circuit breaker When a stock price increases or decreases by a certain percentage in a single day it hits the circuit breaker. Once the stock hits the circuit breaker, trading in the stock above (or below) that price is not allowed for that particular day. Day Trading Day trading is the buying and selling of stocks during the trading day by individuals known as day traders on their own account. The aim is to make a profit on the day and have no open positions at the close of the trading session, the day. Disclosed Quantity (DQ) A dealer can enter such an order in the system wherein only a fraction of the order quantity is disclosed to the market. If an order has an undisclosed quantity, then it trades in quantities of the disclosed quantity. Earnings Per Share (EPS) It is the most important measure of how well (or otherwise) the board of directors are doing for the shareholders. This measure expresses how much the company is earning for every share held. The calculation is 'pre-tax profit dividend by the number of shares in issue'. Earnings per share is more important than the overall reported profit figure ! The reason is that EPS provides a more pure measure of profitability. Futures A contract for the purchase and sale of a commodity, financial instrument or index at a fixed price at a fixed date in the future. Futures contracts were originally invented to allow those who regularly buy and sell goods to protect themselves against future changes in the price of those goods. In other words, the futures markets evolved to allow producers or consumers to hedge their risk. Hedging Offsetting or guarding against investment risk. A perfect hedge is a no-risk-no gain precaution.A conservative strategy for reduction of risk through futures, options or some other derivative, by opening an opposite position to that already held in the underlying market. Taking positions in securities so that each offsets the other. Insider trading Trading on information which is not really available to the general public. Trading in a Company's shares by a connected person having non-public, price sensitive information, such as expansion plans, financial results, takeover bids, etc., by virtue of his association with that Company, is called insider trading.

Illiquid An investment is said to be illiquid if it cannot easily be turned back into cash quickly and at a low cost. Shares in smaller companies are more likely to be illiquid than those in larger companies; they will be less easy to sell and you are likely to find that the spread or difference between the buying and selling price is much wider.So, in other words blue chip shares are more liquid than unquoted companies.

Limit order Is an order for which the price (limit price) has been specified at the time of making the order entry. A limit order describes the instruction an investor gives to his broker setting out how much he's prepared to pay for shares (or any other asset for that matter). Market order Is an order for which no price has been specified at order entry. Market lot Market lot is the minimum number of shares of a particular security that must be transacted on the Exchange. Multiples of the market lot may also be transacted. Market capitalization Market capitalisation is the market value of the equity of a company.Simply put, it is the number of outstanding shares multiplied by the market price of the company. The total market value at the current stock exchange list prices of the total number of equity shares issued by company It is also the currency which can be used in case of acquisitions (in terms of stock swaps). Premium The price of an option (call or put) contract, determined in the competitive market place, which the buyer (holder) of the option pays to its seller (writer) for the rights granted to the former by the option contract. Primary market a place where money is raised by companies to pay for expansion or pay off existing investors.In the futures markets, the primary market is the main underlying market for the financial instrument on which the futures contract is based. Repos Short- term money market instrument; transaction where one party agrees to sell a security to another party for cash. The seller agrees to repurchase the security later. Short Sale A Short sale occurs when a person believing that the prices of shares will fall, sells shares that he does not own with the intention of purchasing the shares at lower price at the time delivery has to be made. This is also known as forward sale. Stop Loss The dealer can enter a regular lot or a special term order with a 'trigger' price. Such orders are called Stop Loss orders. The stop loss orders are not taken for matching unless the trigger price is either reached or if it is surpassed by the last traded price for the security. Once the market price reaches or surpasses the trigger price, the 'stop loss' attribute is removed and the order is taken up for regular matching process. Stock split Splits are about as exciting as getting change for a Rs100 note. Depending upon the split ratio one share of a company is split into the decided number. This is done by reducing the face value of the scrip. Stock splits are expected to improve liquidity in a stock. Volume of Trading The total number of shares which change hands in a particular company's securities. It is the sum of either purchases or sales which necessarily equal. This information is useful in explaining and interpreting fluctuations in share prices.

Stock Cash- Level 1 3 Chapters

This course will take you through the basics of the equity markets and how DreamGains advises its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell Stock cash as a product.

Stocks and Stock markets 3 Sections

This chapter will brief you on the general theory about stocks as a financial instrument and the Indian stock markets. Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. Owning a stock means that one has a stake in the company and therefore has voting rights Owning a stock implies that the shareholder will receive the annual report of the company and has the right to attend the annual general meeting held by the company. A sample of the annual report is attached in the next page Trading/investing in stocks can be done in two ways- Direct and indirect Direct is when the individual buys/sells stocks on his own or through a broker on his/her behalf. A demat account is required to do direct trading. Indirect trading/investing is when the individual buys through Mutual funds

Indian Stock Markets:

As discussed in the Financial markets module, there are two nationalized exchanges in India- NSE and BSE. NSE has around 2000 stocks trading where as the BSE has over 8000 stocks trading. The volumes traded in the NSE are substantially higher than in the BSE and hence DreamGains gives advise only on the scrips trading in the National Stock exchange(NSE). Sensex and Nifty: These two are the major indices of the Indian share market. There are two main stock exchanges in India - BSE and NSE. BSE stands for Bombay Stock Exchange. This is the oldest exchange in India. Thirty shares are included in SENSEX. NSE stands for National Stock Exchange.Nifty has 50 shares included in it. Stocks are sub divided into 3 main categories i.e. Small cap, Mid cap and Large cap These stocks are divided into the 3 categories based on their market capitalization Market capitalization is calculated as the price of the shares multiplied by the number of

outstanding share. For example if the price of the share is Rs 100 and there are 1 lakh outstanding shares then the market capitalization of that stock is 100*100000= 10,00,000,000 i.e. 10 crore Small cap stocks are those that have a market capitalization of less than 1000 cr Mid cap stocks are those that have a market capitalization between 1000 and 5000 cr Large cap stocks are those that have a market capitalization of more than 5000 cr

Stock Cash Product 9 Sections

This chapter will brief you on the Stock cash product that DreamGains advises its customers on. TYPES OF CALLS:
Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages

All the calls provided will be for intraday An average of 3-4 calls will be sent to customers on a daily basis Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. 0.8% Stop loss and Tg1 of 0.8% and Tg2 of 1.5% Only scrips that have a volume value of a minimum of Rs.6 cr will be provided Since the calls will be only intraday short selling calls also will be given Only buy above and sell below calls will be provided i.e. If it is a buy call, Buy above call will be sent and if it is a sell call then a Sell below call will be sent. An example of both these types of calls is as mentioned below Buy SESA GOA above 250 SL- 248 TG-252/253.75 Sell INFOSYS bellow 2000 SL-2016 TG-1984/1970 All calls will have 1 stop loss and 2 targets The calls will be sent to customers via SMS and Yahoo messenger TYPES OF CALLS : INTRADAY All the calls in the stock cash product will be on an intraday basis i.e. If the customer buys a stock recommended by DreamGains today, he has to sell the stock the same day. The customer will be informed to do so. Stocks show an average fluctuation of 3-4% in intraday trade and we try to capture 2-3% of this movement The risk associated with intraday trading is much lower when compared to the positional/delivery based trading. This is because the profit or loss is booked the same day and major fluctuations in the markets are avoided by squaring off the position the same day. The primary focus of a trader must be to safeguard his capital and hence intraday trading is a

safer avenue since the loss is limited to that day. Since the calls will be valid only for intraday, short selling calls will also be sent to customers Short selling is a concept where in the trader can profit from a stock which is depreciating in value. Here the trader sells the stock at a higher price and buys the stock back at a lower price thereby completing his transaction in the same day. For example the trader short sells a stock at Rs.150 in expectation that the stock will fall to 145. Suppose the stock falls to 145 he/she can buy back the stock thereby making a profit of Rs.5 per share. This is exactly the inverse of buying the share at a lower price and sell it at higher price thereby making a profit on the price difference. What is important to note is that the the transaction has to be completed in the same day i.e. If one has bought the stock he/she has has to complete the transaction the same day by selling the stock. If one has sold the stock he/she has to complete the transaction the same day by buying the share.

NUMBER OF CALLS: The customer will receive 3-4 buying or selling calls on an average in a day. The customer is informed that he/she will receive on average 3-4 calls in a day for him/her to plan her investment accordingly. At any given point of time 2 calls will be running simultaneously and hence the investment of the customer has to be divided into 2 components. Lets take a scenario where the customer has an investment of Rs 4 lakhs. He has to divide this into 2 equal components i.e. Rs 2 lakhs has to be invested in each call. Suppose the first call is to buy Sesa Goa above 250, he has to buy Rs 2 lakh worth of shares in Sesa Goa. Hence the quantity that the customer has to buy is Rs 2 lakh/250= 800. Hence he has to buy 800 shares. Suppose the second call is sent ot the customer to sell Infosys below 2000. Here he has to sell Rs 2 lakh worth of Infosys stock i.e. Rs 2 lakh/2000= 100 shares of Infosys. Suppose the customer puts unequal investment in the calls, the the customer is at risk because the call which he has invested more and hits the stop loss can superseed the profit made from the call in which he has invested less. This concept will be explained with different scenarios in the further pages. After one of the 2 calls given initially is closed, the 3rd call will be initiated and hence at any given point of time the customer will have to invest in only 2 calls. RISK REWARD RATIO : As mentioned before the risk reward of all the calls given will be 1:1 i.e. the target1 will be 0.8% and the stop loss will also be 0.8%. Lets take an example where in the the customer is told to Buy Reliance Industries above Rs 800. The stop loss will be worth Rs 6.4 and the Tg1 will be Rs.6.4 and Tg2 will be Rs.12. Hence the entire call will be as below Buy Reliance Industries above 800 SL- 793.6 TG- 806.4/812

 In all the calls the risk reward ratio of 1:1 and 0.8% will be maintained. This risk reward ratio of 1:1 is maintained in all the calls because the customer has to disctribute his risks among all the calls. An example of the same is as below. If the customer has an investment of Rs 4 lakh, he has to divide his investment into 2 parts as mentioned in the above page i.e. Rs 2 lakh has to invested in both the calls. Suppose 2 calls are sent to the customer as below Call 1 Buy Sesa Goa above 250 SL-248 TG- 252/253.75 Call 2 Buy Reliance Industries above 800 SL- 793.6 TG- 806.4/812 In call 1 he has to buy 800 shares of Sesa Goa In call 2 he has to buy 250 shares of Reliance Indsutries Suppose a scenario arises where in Call 1 the 1st target is achieved he books a profit of Rs 2 * 800 = Rs 1600 Suppose the call 2 fails and hits the stop loss, then the customer makes a loss of Rs 6.4 * 250 = Rs 1600 Hence the customer is neutral at the end of the day as he has lost Rs.1600 in one call and made a profit of Rs.1600 in the other. Suppose the customer had invested Rs 1 lakh in the first call and Rs 3lakh in the second call Profit in Call 1 is Rs 2 * 400 shares = Rs 800(since he has bought share worth Rs 1 lakh is call 1) Loss in Call 2 is Rs 6.4 * 375 shares= Rs 2400(since he has bought shares worth Rs 3 lakh in Call 2) Hence at the end of the day the customer will be in a net loss of Rs 1800. Therefore, it is absolutely vital for the customer to invest equally in all the calls. MAINTAINING THE STOP LOSS: In every call that is sent to the customer a Stop loss(SL) is mentioned. The concept of a stop loss is to limit the loss of the customer to 1%. Suppose the analysis says that the stock price will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent. Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than 1% where as he could have limited his loss at 1% Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in futures profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the stock price is moving is the unfavorable direction. Assume that the share bought falls

down drastically, in this case one may end up with huge loss. But stop loss will help restrict the loss to a certain limit.

VOLUME OF THE SCRIPS: We give calls to our customers in scrips that are high volume. There are over 2000 stocks trading in NSE and not all of them have a high volume. Low volume stocks show extremely erratic movement and hence analysis on these stock is very difficult and risky for customer. Hence we give calls only on those stocks that have a volume value of more than Rs.6 cr. Volume value is calculated as the price of the stock multiplied by the number of shares traded. Another reason for choosing high volume stocks is that the customers should get an opportunity to buy or sell the quantity that they want. In low volume stocks, the customer may not get the complete quantity that he/she has bid for. High volume stocks show a relatively stable movement and in most cases follow technical analysis. BUY ABOVE AND SELL BELOW: As mentioned before, the calls that we give our customers will be Buy above if it is a buy call and Sell below if it is sell call There are several reasons for doing so. One of the reasons is that DreamGains follows technical analysis while giving calls. One of the indicators used in technical analysis is support and resistance level. The basics of technical analysis will be covered in the further modules. What is important to understand now is that when a stock breaks a resistance level it is expected to move further up and if it breaks a support level it is expected to fall down. Suppose the resistance for a stock is at Rs150 and currently it is trading at 145, we will send out a call to buy the stock ABOVE Rs 150 as it is expected to move further up after it breaks the 150 level Suppose the resistance for a stock is at 200 and currently the stock is trading at 205 we will send out a call to sell BELOW 200 as it is expected to fall further if it breaks the 200 level. A price is chart is attached below to visually explain the same. Another reason for giving buy above and sell below calls is that the customers must get sufficient time to execute the trades advised by DreamGains and hence a message to buy above a particular level will provide them sufficient time to enter the call. TYPES OF ORDERS: There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last

price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the stock through a limit order. This is done because we recommend the customer to buy above a particular level and he can do so by placing a limit order. For example suppose we have sent the customer to buy a stock above 200 and currently the stock is trading at 198, if he places a market order, his order will get executed at 198. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order above 200. The details of how to place the orders will be explained in the further pages. USPs OF THE PRODUCT: HIGH MOMENTUM STOCKS HIGH VOLUME ACCURACY OF 80-85% INTRADAY CALLS CAN BUY ANY NUMBER OF SHARES RESEARCH SUPPORT

Trading strategy 1 Section

This chapter will brief you on the trading strategy that the customer should follow in DreamGains calls

Stock Futures- Level 1 3 Chapters

This course will take you through the basics of the stock futures markets and how DreamGains advises its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell Stock futures as a product.

Stock futures and Stock futures markets 2 Sections

This chapter will brief you on the general theory about stock futures as a financial instrument and the

stock futures markets in India.

BASICS OF FUTURES:
In the simplest terms, a futures contract is an agreement in which a buyer and a seller agree to consummate a transaction at a predetermined time in the future at a price agreed upon today.

With a futures contract, the underlying merchandise is known. For example, you can buy a futures contract on gold, stocks, Nifty, Silver, and many other items. The underlying item is described specifically in the contract specifications which are determined by the futures exchange on which it trades.

Below are some of the differences between the spot mraket and the futures market Spot market

A market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective. Any stock trading only in the spot market has a circuit limit of either 5,10 or 20%. For example Indiabulls finance has a circuit limit of 20% which means that the price of the stock will not go above or below the 20% limit for that day. Any stock trading in the spot market does not have a lot size. For example one can buy or sell any number of shares of Reliance Industries in the spot market. Any stock trading in the spot market does not have a contract expiry. Short selling in the spot market is allowed only for intraday. No positions can be carried forward for the next day.

Futures market

A futures transaction for which instruments can be reasonably expected to be delivered in one month or less. Though these goods may be bought and sold at spot prices, the goods in question are traded on a forward physical market. Any stock trading in the futures market does not have a circuit limit. For example since Reliance Industries trades in both the spot and futures market, it does not have a circuit limit in the both the markets. Any stock trading in the futures market has a definite lot size that is set by the exchange. For example Reliance Industries has a lot size of 250 shares. Hence if one wants to buy 1 lot of Reliance Industries, he/she has to buy a minimum of 250 shares in the futures segment. One can buy only in multiples of this lot size i.e. 250,500,750 and so on. Any stock trading in the futures market has a contract expiry which is the last Thursday of every month. In the futures market at any given point of time 3 contracts will be available to trade i.e. current month, next month and the month after next. Short selling position is allowed to be carried forward till the contract expiry in the futures segment.

INDIAN STOCK FUTURES MARKET: As mentioned in the previous modules, there are 2 exchanges in India namely NSE and BSE. Stock futures are only traded in NSE. Not all scrips that are there in spot market are traded in the futures market Out of the 2000 scrips there are around 200-250 stocks that are traded in the futures segment A list of these stocks is updated on the NSE website It is at the discretion of NSE to add and remove stocks from the futures segment. However, this

information of any addition or deletion will be intimated to the traders through circulars released by NSE. Usually those stocks are allowed to trade in futures that have high volumes and a relatively stable movement Each stock future with its lot size will be mentioned by the NSE in the circular. The lot size of these stocks can be changed according to how much it has appreciated or depreciated in value. Any change in the lot size will also be intimated by NSE through a circular.

Stock Futures Product 8 Sections

This chapter will brief you on the Stock futures product that DreamGains advises its customers on. TYPES OF CALLS:
Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages

All the calls provided will be for intraday An average of 2-3 calls will be sent to customers on a daily basis Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. The stop loss and target will be worth Rs 4000 each. This will be explained in detail in the further pages Short selling calls also will be given Only buy above and sell below calls will be provided i.e. If it is a buy call, Buy above call will be sent and if it is a sell call then a Sell below call will be sent. An example of both these types of calls is as mentioned below Buy SESA GOA futures above 250(lot size- 2000) SL- 248 TG-252/254 Sell INFOSYS futures below 2000(lot size-250) SL-2016 TG-1984/1968 All calls will have 1 stop loss and 2 targets The calls will be sent to customers via SMS and Yahoo messenger TYPES OF CALLS-INTRADAY:
All the calls in the stock futures product will be on an intraday basis i.e. If the customer buys a stock future recommended by DreamGains today, he has to sell it the same day. The customer will be informed to do so.

Stocks show an average fluctuation of 3-4% in intraday trade and we try to capture 2-3% of this movement The risk associated with intraday trading is much lower when compared to the positional/delivery based trading. This is because the profit or loss is booked the same day and

major fluctuations in the markets are avoided by squaring off the position the same day. The primary focus of a trader must be to safeguard his capital and hence intraday trading is a safer avenue since the loss is limited for that day. Since the calls will be valid only for intraday, short selling calls will also be sent to customers Short selling is a concept where in the trader can profit from from a stock which is depreciating in value. Here the trader sells the stock future at a higher price and buys the stock future back at a lower price thereby completing his transaction in the same day. For example the trader short sells a stock at Rs.150 in expectation that the stock will fall to 145. Suppose the stock falls to 145 he/she can buy back the stock thereby making a profit of Rs.5 per share. This is the exactly the inverse of buying the share at a lower price and sell it at higher price thereby making a profit on the price difference.

NUMBER OF CALLS:
The customer will receive 2-3 buying or selling calls on an average in a day.

The customer is informed that he/she will receive on average 2-3 calls in a day for him/her to plan her investment accordingly. At any given point of time 2 calls will be running simultaneously and hence the investment of the customer has to be divided into 2 components. Lets take a scenario where the customer has an investment to buy 4 lots. He has to divide this into 2 equal components i.e. 2 lots to be invested in each call. Suppose the first call is to buy Sesa Goa futures above 250, he has to buy 2 lots of Sesa Goa futures. Suppose the second call is sent ot the customer to sell Infosys futures below 2000. Here he has to sell 2 lots of Infosys futures below 2000. Suppose the customer puts unequal investment in the calls, the the customer is at risk because the call which he has invested more and hits the stop loss can superseed the profit made from the call in which he has invested less. This concept will be explained with different scenarios in the further pages. After one of the 2 calls given initially is closed, the 3rd call will be initiated and hence at any given point of time the customer will have to invest in only 2 calls.

RISK REWARD RATIO: As mentioned before the risk reward of all the calls given will be 1:1 i.e. the target and Stop loss will be worth Rs 4000 each. Lets take an example where in the the customer is told to Buy Reliance Industries futures above Rs 800. The lot size for Reliance Industries futures is 1000. Hence, if the customer wants to buy 1 lot of Reliance Industries futures, he has to buy a minimum of 1000 shares. Since the risk reward ratio in Stock futures is Rs 4000, the stop loss and target is calculated as Rs 4000/lot size. In this case the SLand Tgt will be Rs 4000/1000= Rs 4. Hence the complete call will be as follows

Buy Reliance Industries futures above 800(lot size-1000) SL- 796 TG- 804/808 In simple terms it means that if a customer has bought 1 lot of stock futures, the maximum he will lose if it hits the stop loss is Rs 4000 and the maximum he will gain if it hits the first target is Rs 4000. In all the calls the risk reward ratio of 1:1 and Rs 4000 will be maintained. This risk reward ratio of 1:1 is maintained in all the calls because the customer has to disctribute his risks among all the calls. An example of the same is as below. If the customer has an investment of 4 lots, he has to divide his investment into 2 parts as mentioned in the above page i.e. 2 lot to be invested in both the calls. Suppose 2 calls are sent to the customer as below Call 1 Buy Sesa Goa futures above 250(lot size-2000) SL-248 TG- 252/254 Call 2 Buy Reliance Industries futures above 800(lot size-1000) SL-796 TG-804/808 In call 1 he has to buy 2 lots of Sesa Goa futures In call 2 he has to buy 2 lots of Reliance Indsutries futures Suppose a scenario arises where in Call 1 the 1st target is achieved he books both lots and makes a profit of Rs Rs 8000 Suppose the call 2 fails and hits the stop loss, then the customer makes a loss of Rs 8000 Hence the customer is neutral at the end of the day as he has lost Rs 8000 in one call and made a profit of Rs 8000 in the other. Suppose the customer had traded in 1 lot in the first call and 3 lots in the second call Profit in Call 1 is Rs 4000(since he has bought 1 lot in call 1) Loss in Call 2 is Rs 12000 (since he has bought 3 lots in call 2) Hence at the end of the day the customer will be in a net loss of Rs 8000. Therefore, it is absolutely vital for the customer to invest equally in all the calls. Maintaining a stop loss: In every call that is sent to the customer a Stop loss(SL) is mentioned. The concept of a stop loss is to limit the loss of the customer to Rs 4000/lot Suppose the analysis says that the stock price will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent.

 Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than Rs.4000/lot where as he could have limited his loss at Rs 4000/lot Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in futures profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the stock price is moving is the unfavorable direction. Assume that the share bought falls down drastically, in this case one may end up with huge loss. But stop loss will help restrict the loss to a certain limit. Buy above and sell below: As mentioned before, the calls that we give our customers will be Buy above if it is a buy call and Sell below if it is sell call There are several reasons for doing so. One of the reasons is that DreamGains follows technical analysis while giving calls. One of the indicators used in technical analysis is support and resistance level. The basics of technical analysis will be covered in the further modules. What is important to understand now is that when a stock breaks a resistance level it is expected to move further up and if it breaks a support level it is expected to fall down. Suppose the resistance for Reliance fturues is at 800 and currently it is trading at 796, we will send out a call to buy Reliance futures ABOVE 800 as it is expected to move further up after it breaks the 800 level Suppose the support for Reliance futures is at 750 and currently it is trading at 755 we will send out a call to sell BELOW 750 as it is expected to fall further if it breaks the 750 level. Another reason for giving buy above and sell below calls is that the customers must get sufficient time to execute the trades advised by DreamGains and hence a message to buy above a particular level will provide them sufficient time to enter the call. TYPES OF ORDERS: There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a

trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the stock through a limit order. This is done because we recommend the customer to buy above a particular level and he can do so by placing a limit order. For example suppose we have sent the customer to buy a stock above 200 and currently the stock is trading at 198, if he places a market order, his order will get executed at 198. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order above 200. The details of how to place the orders will be explained in the further pages. USPs of the product: ACCURACY OF 80-85% HIGH VOLUME (MOSTLY A CATEGORY STOCKS) ENOUGH TIME TO ENTER THE CALL INTRADAY CALLS RESEARCH SUPPORT

Trading strategy 1 Section

This chapter will brief you on the trading strategy that the customer should follow in DreamGains calls

Nifty Futures- Level 1 3 Chapters

This course will take you through the basics of the Index futures markets and how DreamGains advises its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell Nifty futures as a product.

Index futures 1 Section

This chapter will brief you on the general theory about index futures as a financial instrument and the index futures markets in India. Basics of index: An index is the represntative of the exchage which projects a consolidated movement of the entire market.

 The Nifty is index that represents the NSE and SENSEX is the index that represents the BSE Nifty comprises of 50 stocks with the highest market capitalization(market capitalizatio= Price of the share * the number of outstanding shares) SENSEX comprises 30 stocks with the highest market capitalization in the BSE. The stock with the highest market capitalization will have the highest weightage. Hence the weightage of each stock will vary on a daily basis since the maket capitalization and prices of a stock changes on a daily basis. SInce indices are just a notional number, they are represented by number of points and not in ruppee terms. For example if the Nifty moves from 5100 to 5150, it has moved by 50 points and not by Rs 50. Lets take an example where Reliance industries, which has a weightage of 13% in the nIfty, moves up by 5% on a particular day. So the NIfty will move up by 13% of 5% i.e. 0.65% from the previous day. Suppose NIfty was at 5100 the previous day, it will be move up by 33.15 points(0.65%) and close at 5133.15. Hence the individual movements of all the 50 stocks in lieu of the weighted average will be used to calculate the movement of Nifty in a day. The movement of SENSEX is also calculated in the same manner. The NIfty and SENSEX are present both in spot and futures. Nifty can be traded in the deriavtives segment i.e. futures and options SENSEX can be traded only in futures Hence both the Nifty and SENSEX cannot be traded in the spot market.

Nifty Futures Product 8 Sections

This chapter will brief you on the Nifty futures product that DreamGains advises its customers on. Type of calls : Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages All the calls provided will be for intraday An average of 5-6 calls will be sent to customers in a week Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. The stop loss and target for Nifty futures will be 25 points and Bank Nifty futures will be 40 points Short selling calls also will be given Only buy above and sell below calls will be provided i.e. If it is a buy call, Buy above call will be sent and if it is a sell call then a Sell below call will be sent. An example of both these types of calls is as mentioned below Buy Nifty futures above 5350 SL- 5325 TG-5375/5400 Sell Bank Nifty futures below 10400

SL-10440 TG-10360/10320 All calls will have 1 stop loss and 2 targets The calls will be sent to customers via SMS and Yahoo messenger Type of calls- Intraday : All the calls in the Nifty futures product will be on an intraday basis i.e. If the customer buys Nifty futures or Bank Nifty futures recommended by DreamGains today, he has to sell it the same day. The customer will be informed to do so. Nifty shows an average fluctuation of 40-45 points in intraday trade and we try to capture 25-30 points of this movement The risk associated with intraday trading is much lower when compared to the positional/delivery based trading. This is because the profit or loss is booked the same day and major fluctuations in the markets are avoided by squaring off the position the same day. The primary focus of a trader must be to safeguard his capital and hence intraday trading is a safer avenue since the loss is limited for that day. Since the calls will be valid only for intraday, short selling calls will also be sent to customers Short selling is a concept where in the trader can profit from from a stock which is depreciating in value. Here the trader sells the index future at a higher price and buys the index future back at a lower price thereby completing his transaction in the same day. For example the trader short sells Nifty futrues at 5200 in expectation that it will fall to 5150. Suppose Nifty futures falls to 5150 he/she can buy it back thereby making a profit of 50 points per lot. SInce the lot size for Nifty futures is 50(i.e. one has to buy minimum 50 quantity of Nifty futures to trade in 1 lot), the profit he/she would make if Rs 2500. This is the exactly the inverse of buying Nifty futures at a lower price and sell it at higher price thereby making a profit on the price difference. Number of calls : The customer will receive 1-2 buying or selling calls on an average in a day. The customer is informed that he/she will receive on average 5-6 calls in a week for him/her to plan her investment accordingly. The investment required to trade in Nifty and Bank Nifty futures calls is as explained below The lot size for Nifty futures is 50 and for Bank Nifty futures is 25 i.e. If one wants to trade in Nifty futures he has to buy a minimum of 1 lot(50 qty) and in Bank Nifty futures 1 lot constitutes 25 qty. If one wants to buy 1 lot of Nifty futures, the investment required will be 5200*50( assuming Nifty futures is trading at 5200) = Rs.2,60,000. Hence if one wants to buy 1 lot of Nifty futures the approximate investment will be between 2.5L and 3L If one wants to buy 1 lot of Bank Nifty futures, the investment required will be 10400*25( assuming Bank Nifty futures is trading at 10400) = Rs.2,60,000. Hence if one wants to buy 1 lot of Bank Nifty futures the approximate investment will be between 2.5L and 3L This makes it very difficult for all traders to trade in Nifty and Bank Nifty futures. To encourage more traders to participate in the marekt, brokers all over India provide something

cslled as MARGIN for trading. This means that the trader does not have to pay the entire 2.6L to trade in 1 lot. He has the option to pay only 10% of the actual investment. Hence his investment will be 26,000. The broker provides margin for customers only if it is intraday trade. This is done because the risk of the broker is limited to that particular day. Most brokers provide a margin of 10% to encourage high volumes in trading. Risk reward ratio : As mentioned before the risk reward of all the calls given will be 1:1 i.e. the target and Stop loss in Nifty futures will be 25 points each and in Bank Nifty futures will be 40 points. The customer has to trade in equal number of lots in all calls. The ideal investment we suggest is a minimum of 2 lots in each call. SInce we give 2 targets, the customer has to book 50% at Tg1(1 lots) and 50% at Tg2(1 lot) The has to buy a minimum 2 lots in all calls to distribute his risk. Unequal invesment will result in possibility of higher loss. Maintaining a stop loss : In every call that is sent to the customer a Stop loss(SL) is mentioned. The concept of a stop loss is to limit the loss of the customer to Rs 1250 per lot if Nifty futures and Rs 1000 if Bank Nifty futures Suppose the analysis says that the Nifty futures price will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent. Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than Rs 1250 per lot where as he could have limited his loss at Rs1250. Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in future profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the stock price is moving is the unfavorable direction. Assume that the share bought falls down drastically, in this case one may end up with huge loss. But stop loss will help restrict the loss to a certain limit. Buy above and sell below : As mentioned before, the calls that we give our customers will be Buy above if it is a buy call and Sell below if it is sell call. There are several reasons for doing so. One of the reasons is that DreamGains follows technical analysis while giving calls. One of the indicators used in technical analysis is support and resistance level. The basics of technical analysis will be covered in the further modules. What is important to understand now is that when Nifty breaks a resistance level it is expected to move further up and if it breaks a support level it is expected to fall down. Suppose the resistance for Nifty fturues is at 5200 and currently it is trading at 5180, we will

send out a call to buy Nifty futures ABOVE 5200 as it is expected to move further up after it breaks the 5200 level Suppose the support for Nifty futures is at 5150 and currently it is trading at 5175 we will send out a call to sell BELOW 5150 as it is expected to fall further if it breaks the 5150 level. Another reason for giving buy above and sell below calls is that the customers must get sufficient time to execute the trades advised by DreamGains and hence a message to buy above a particular level will provide them sufficient time to enter the call. Types of orders : There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the stock through a limit order. This is done because we recommend the customer to buy above a particular level and he can do so by placing a limit order. For example suppose we have sent the customer to buy a stock above 200 and currently the stock is trading at 198, if he places a market order, his order will get executed at 198. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order above 200. The details of how to place the orders will be explained in the further pages. USPs of the product : LIMITED CALLS A DAY ACCURACY of 80-85% BENEFIT OF ALL 50 NIFTY STOCKS INTRADAY CALLS RESEARCH SUPPORT

MCX Commodities- Level 1 2 Chapters

This course will take you through the basics of the commodity markets and how DreamGains advises

its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell MCX commodities as a product. Commodities and Commodity markets 2 Sections This chapter will brief you on the general theory about commodities as a financial instrument and the Indian commodity markets.

Commodities: A commodity is a product having commercial value that can be produced, bought, sold, and consumed.
Commodity future is a contract to buy or sell specific commodity, of a specific quality, at a specific price, for a specific future date on the exchange. As in capital markets, a commodity exchange is an association or a company or any other body corporate that is organizing futures trading in commodities and is registered with FMC (Forward Market Commission). Two major national level commodities exchanges are Multi Commodities Exchange of India (MCX), National Commodities and Derivatives Exchange of India (NCDEX). Commodity Market in India is regulated by Forward Market Commission (FMC) under the guidance of the Ministry of Consumer Affairs, Food, & Public Distribution. The biggest advantage of trading in commodity futures is price risk management and price discovery. Farmers can protect themselves against undesirable price movements and decide upon cropping pattern. The merchandisers avoid price risk. Processors keep control on raw material cost and decreasing inventory values. International traders also can lock in their prices. Commodities have predefined lot sizes (set by the respective exchanges as per existing regulation) where current price of a particular commodity, for selected expiry, is shown in contract information available & rate units differ for different commodities. The standard unit based on which the price of the contract is quoted for trading is called quotation or base value. E.g. for gold contract, the quotation or base value is 10 grams while it is 1 kg in case of silver on MCX. This will be explained in the further pages. Since all commodities traded in MCX are futures contracts it has the same characteristics of any futures contract. They are as explained below Like equity markets, commodity market has circuit limits. Exchanges have circuit filters in place. The filters vary from commodity to commodity but the maximum individual commodity circuit filter is 6 per cent. The price of any commodity that fluctuates either way beyond its set price limit will fall in circuit breaker category. Short selling of contracts is allowed and can be carried forward till the contract expiry. This is irrelavant to us since DreamGains provides only intraday advise in commodities. The futures contract in commodities have a definite lot size and a contract expiry. The lot size for each commodity will be explained in the further pages. MCX(multi commodity exchange) is the major exchange in India that allows trading in all major commodities. The same is

MCX have 3 parts (A) Bullions (B) Base Metals (c) Energy In Bullions, it have 2 parts : (a) Gold (b) Silver In Base Metals, it has 5 Parts : (a) Copper (b) Zinc ( c) Lead (d) Aluminium (e) Nickel

In Energy, it has 2 parts : (a) Crued Oil (b) Natural Gas Apart from the above mentioned commodities, there are some agri commodities that are traded in the exchange. However, the volumes traded in these agri commodities is very minimal and hence the calls given in MCX commodites are only as mentioned in the graphical representation above. The lot sizes for each of the above mentioned 9 commodites are as follows Commodity Lot size Gold 1 kg Silver 30 kg Copper 1000 kg Crude Oil 100 barrels Natural gas 1250 Mmbtu Zinc 5000 kg Lead 5000 kg Aluminium 5000 kg Nickle 250 kg Hence if one wants to buy the commodity futures in MCX he has to buy in a minimum of the lot sizes mentioned above. The market timings for MCX is 10:00 AM to 11:30 PM on Weekdays and 10:00 AM to 2:00 PM on Saturdays.

MCX Bullion Commodity product 8 Sections

This chapter will brief you on the MCX bullion commodity product that DreamGains advises its customers on. Number of calls: Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages All the calls provided will be for intraday An average of 2-3 calls will be sent to customers on a daily basis Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. 1 stop loss and 2 targets Since the calls will be only intraday short selling calls also will be given Only buy above and sell below calls will be provided i.e. If it is a buy call, Buy above call will be sent and if it is a sell call then a Sell below call will be sent. An example of both these types of calls is as mentioned below Buy Gold(March) above 28000 SL- 27950

TG-28050/28100 Sell Silver(April) bellow 58000 SL-58150 TG-57850/57700 All calls will have a stop loss and 2 targets The calls will be sent to customers via SMS and Yahoo messenger Types of calls- Intraday: All the calls in this product will be on an intraday basis i.e. If the customer buys a commodity recommended by DreamGains today, he has to sell the commodity the same day. The customer will be informed to do so. The risk associated with intraday trading is much lower when compared to the positional/delivery based trading. This is because the profit or loss is booked the same day and major fluctuations in the markets are avoided by squaring off the position the same day. The primary focus of a trader must be to safeguard his capital and hence intraday trading is a safer avenue since the loss is limited for that day. Since the calls will be valid only for intraday, short selling calls will also be sent to customers Short selling is a concept where in the trader can profit from from a commodity which is depreciating in value. Here the trader sells the commodity at a higher price and buys the commodity back at a lower price thereby completing his transaction in the same day. For example the trader short sells Gold at 28000 in expectation that it will fall to 27900. Suppose Gold falls to 27900 he/she can buy it back thereby making a profit of Rs.100 per lot. This is the exactly the inverse of buying the commodity at a lower price and sell it at higher price thereby making a profit on the price difference. What is important to note is that the the transaction has to be completed in the same day i.e. If one has bought the commodity he/she has has to complete the transaction the same day by selling the commodity. If one has sold the commodity he/she has to complete the transaction the same day by buying the commodity. Number of calls and Investment: The customer will receive 2-3 buying or selling calls on an average in a day. The customer is informed that he/she will receive on average2-3 calls in a day for him/her to plan her investment accordingly. At any given point of time 2 calls will be running simultaneously and hence the investment of the customer has to be divided into 2 components. We advise the customers to buy a minimum of 2 lots per call. The approximate investment required to trade in 1 lot of each commodity is as follows Approx Commodity Investment Gold 1-2-1.5L Silver 70-75k Copper 18-20k

Crude 20-25k Natural gas 8-10k Zinc 20-25k Lead 20-25k Aluminium 20-25k Nickle 15-20k Hence ideally a customer should have an investment of around Rs. 2.5-3 lakh to trade in our intraday commodity calls Risk reward ratio : As mentioned before the risk reward of all the calls given will be 1:1. The risk reward ratio for each commodity is as mentioned below. Please note tha same can be changed depending on market conditions. However, 1:1 will always be maintained in all calls. Commodity Risk reward Lot size Profit/Loss per lot Gold Rs.50 1kg Rs.5000 Silver Rs.150 30kg Rs.4500 Copper Rs.2 1000kg Rs.2000 Crude Rs.20 100 barrels Rs.2000 Natural gas Rs.2 1250Mbtu Rs.2500 Zinc Re.1 5000kg Rs.5000 Lead Re.1 5000kg Rs.5000 Aluminium Re.1 5000kg Rs.5000 Nickle Rs.10 250kg Rs.2500 Hence if one trades in 1 lot in Gold in DreamGains call and it hits the first target, then he stands to gain Rs 5000. Similar is the case for all the other commodities as mentioned in the table above. This stop loss target ratio in all commodities is maintained by DreamGains based on the expreience of the research team. This does not mean that all companies maintain the same ratios as DreamGains. Maintaining a stop loss: In every call that is sent to the customer a Stop loss(SL) is mentioned. The concept of a stop loss is to limit the loss of the customer to a limit. Suppose the analysis says that the commodity price will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent. Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than the stop loss where as he could have limited his loss at that level Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in futures profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the commodity price is moving is the unfavorable direction. Assume that the commodity bought falls down drastically, in this case one may end up with huge loss. But stop loss will help

restrict the loss to a certain limit.

Buy above and sell below: As mentioned before, the calls that we give our customers will be Buy above if it is a buy call and Sell below if it is sell call There are several reasons for doing so. One of the reasons is that DreamGains follows technical analysis while giving calls. One of the indicators used in technical analysis is support and resistance level. The basics of technical analysis will be covered in the further modules. What is important to understand now is that when a stock breaks a resistance level it is expected to move further up and if it breaks a support level it is expected to fall down. Suppose the resistance for a commodity is at Rs150 and currently it is trading at 145, we will send out a call to buy the commodity ABOVE Rs 150 as it is expected to move further up after it breaks the 150 level Suppose the resistance for a commodity is at 200 and currently the commodity is trading at 205 we will send out a call to sell BELOW 200 as it is expected to fall further if it breaks the 200 level. A price is chart is attached below to visually explain the same. Another reason for giving buy above and sell below calls is that the customers must get sufficient time to execute the trades advised by DreamGains and hence a message to buy above a particular level will provide them sufficient time to enter the call.

Types of orders: There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last

price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the commodity through a limit order. This is done because we recommend the customer to buy above a particular level and he can do so by placing a limit order. For example suppose we have sent the customer to buy Gold above 28000 and currently it is trading at 27950, if he places a market order, his order will get executed at 27950. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order above 28000. The details of how to place the orders will be explained in the further pages. USPs of the product: ACCURACY OF 80-85% EVENING CALLS INTRADAY CALLS RESEARCH SUPPORT

NCDEX Commodities- Level 1 2 Chapters

This course will take you through the basics of the commodity markets and how DreamGains advises its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell NCDEX/Agri commodities as a product. Commodities and Commodity markets 2 Sections This chapter will brief you on the general theory about commodities as a financial instrument and the Indian commodity markets. Commodities: A commodity is a product having commercial value that can be produced, bought, sold, and consumed. Commodity future is a contract to buy or sell specific commodity, of a specific quality, at a specific price, for a specific future date on the exchange.

 As in capital markets, a commodity exchange is an association or a company or any other body corporate that is organizing futures trading in commodities and is registered with FMC (Forward Market Commission). Two major national level commodities exchanges are Multi Commodities Exchange of India (MCX), National Commodities and Derivatives Exchange of India (NCDEX). Commodity Market in India is regulated by Forward Market Commission (FMC) under the guidance of the Ministry of Consumer Affairs, Food, & Public Distribution. The biggest advantage of trading in commodity futures is price risk management and price discovery. Farmers can protect themselves against undesirable price movements and decide upon cropping pattern. The merchandisers avoid price risk. Processors keep control on raw material cost and decreasing inventory values. International traders also can lock in their prices. Commodities have predefined lot sizes (set by the respective exchanges as per existing regulation) where current price of a particular commodity, for selected expiry, is shown in contract information available & rate units differ for different commodities. The standard unit based on which the price of the contract is quoted for trading is called quotation or base value. Since all commodities traded in NCDEX are futures contracts it has the same characteristics of any futures contract. They are as explained below Like equity markets, commodity market has circuit limits. Exchanges have circuit filters in place. The filters vary from commodity to commodity but the maximum individual commodity circuit filter is 6 per cent. The price of any commodity that fluctuates either way beyond its set price limit will fall in circuit breaker category. Short selling of contracts is allowed and can be carried forward till the contract expiry. This is irrelavant to us since DreamGains provides only intraday advise in commodities. The futures contract in commodities have a definite lot size and a contract expiry. The lot size for each commodity will be explained in the further pages. Indian Commodity markets- NCDEX: National Commodity & Derivatives Exchange Limited (NCDEX) is the countrys leading agri futures commodity exchange. NCDEX is a professionally managed on-line multi commodity exchange offering commodity futures trading in a wide range of commodities viz, agricultural, base metals, precious metals, energy, ferrous metal, and others. Although commodotes apart from Agri are also traded in NCDEX, the volumes in these other commodities are very thin. The volumes in agri commodities are high and hence DreamGains provides calls only in Agri Commodities traded in NCDEX. Metals and energy commodity calls are given in the commodites traded in MCX as expalined in the previous modules. Although there are a total of 23 agri commodites that are traded in NCDEX, there are only about 9 Agri coomodites that are frequently traded. The lot sizes and names are as below. Commodity JEERA SOYBEAN CHANA PEPPER SOY REFINED OIL Lot Size 30MT 100MT 100MT 10MT 1000MT

GUARSEED 10MT GUARGUM 50MT TURMERIC 50MT SUGAR 100MT Hence if one wants to buy the commodity futures in NCDEX he has to buy in a minimum of the lot sizes mentioned above. Although the market timings for NCDEX is 10:00 AM to 11:30 PM, the Agri commodites in the NCDEX market trade between 10:00 AM to 5:00 PM on weekdays and 10:00 AM to 2:00 PM on Saturdays.

NCDEX Agri Commodity product 7 Sections

This chapter will brief you on the NCDEX Agri commodity product that DreamGains advises its customers on. Number of calls: Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages All the calls provided will be for intraday An average of 2-3 calls will be sent to customers on a daily basis Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. 1 stop loss and 2 targets Since the calls will be only intraday short selling calls also will be given Only buy above and sell below calls will be provided i.e. If it is a buy call, Buy above call will be sent and if it is a sell call then a Sell below call will be sent. An example of both these types of calls is as mentioned below Buy Pepper(March) above 35150 SL- 34950 TG-35350/35550 Sell Soybean(April) bellow 2250 SL-2262 TG-2238/2226 All calls will have 1 stop loss and 2 targets The calls will be sent to customers via SMS and Yahoo messenger Types of calls- Intraday: All the calls in this product will be on an intraday basis i.e. If the customer buys a commodity recommended by DreamGains today, he has to sell the commodity the same day. The customer will be informed to do so. The risk associated with intraday trading is much lower when compared to the positional/delivery based trading. This is because the profit or loss is booked the same day and major fluctuations in the markets are avoided by squaring off the position the same day.

 The primary focus of a trader must be to safeguard his capital and hence intraday trading is a safer avenue since the loss is limited for that day. Since the calls will be valid only for intraday, short selling calls will also be sent to customers Short selling is a concept where in the trader can profit from from a commodity which is depreciating in value. Here the trader sells the commodity at a higher price and buys the commodity back at a lower price thereby completing his transaction in the same day. For example the trader short sells Pepper at 35150 in expectation that it will fall to 35000. Suppose Pepper falls to 35000 he/she can buy it back thereby making a profit of Rs.150 per lot. This is the exactly the inverse of buying the commodity at a lower price and sell it at higher price thereby making a profit on the price difference. What is important to note is that the the transaction has to be completed in the same day i.e. If one has bought the commodity he/she has has to complete the transaction the same day by selling the commodity. If one has sold the commodity he/she has to complete the transaction the same day by buying the commodity. Number of calls and Investment: The customer will receive 2-3 buying or selling calls on an average in a day. The customer is informed that he/she will receive on average 2-3 calls in a day for him/her to plan her investment accordingly. At any given point of time 2 calls will be running simultaneously and hence the investment of the customer has to be divided into 2 components. We advise the customers to buy a minimum of 2 lots per call. The approximate investment required to trade in 1 lot of each commodity is as follows Commodity Approx Investment JEERA 12-15k SOYBEAN 20-25k CHANA 28-35k PEPPER 45-50k REFINED SOY OIL 36-40k GUARSEED 2-2.5L GUARGUM 5-5.5L TURMERIC 42-47k SUGAR 15-20k Hence ideally a customer should have an investment of around Rs. 1.5-2 lakh to trade in our intraday Agri-commodity calls. Risk reward ratio: As mentioned before the risk reward of all the calls given will be 1:1. The risk reward ratio for each commodity is as mentioned below Commodity JEERA SOYBEAN CHANA Risk reward Lot size Rs. 6030MT Rs. 12100MT Rs. 12100MT Profit/Loss per lot Rs.1800 Rs.1200 Rs.1200

PEPPER Rs. 20010MT Rs.2000 REFINED SOY OIL Rs. 21000MT Rs.2000 GUARSEED Rs. 1510MT Rs.1500 GUARGUM Rs. 5050MT Rs.2500 TURMERIC Rs. 5050MT Rs.2500 SUGAR Rs. 12100MT Rs.1200 Hence if one trades in 1 lot in Pepper in DreamGains call and it hits the first target, then he stands to gain Rs 2000. Similar is the case for all the other commodities as mentioned in the table above. This stop loss target ratio in all commodities is maintained by DreamGains based on the expreience of the research team. This does not mean that all companies maintain the same ratios as DreamGains. Maintaining a stop loss: In every call that is sent to the customer a Stop loss(SL) is mentioned. The concept of a stop loss is to limit the loss of the customer to a limit. Suppose the analysis says that the commodity price will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent. Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than the stop loss where as he could have limited his loss at that level Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in futures profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the commodity price is moving is the unfavorable direction. Assume that the commodity bought falls down drastically, in this case one may end up with huge loss. But stop loss will help restrict the loss to a certain limit. Buy above and sell below: As mentioned before, the calls that we give our customers will be Buy above if it is a buy call and Sell below if it is sell call There are several reasons for doing so. One of the reasons is that DreamGains follows technical analysis while giving calls. One of the indicators used in technical analysis is support and resistance level. The basics of technical analysis will be covered in the further modules. What is important to understand now is that when a stock breaks a resistance level it is expected to move further up and if it breaks a support level it is expected to fall down. Suppose the resistance for a commodity is at Rs150 and currently it is trading at 145, we will send out a call to buy the commodity ABOVE Rs 150 as it is expected to move further up after it breaks the 150 level Suppose the resistance for a commodity is at 200 and currently the commodity is trading at 205 we will send out a call to sell BELOW 200 as it is expected to fall further if it breaks the 200 level. A price is chart is attached below to visually explain the same.

Another reason for giving buy above and sell below calls is that the customers must get sufficient time to execute the trades advised by DreamGains and hence a message to buy above a particular level will provide them sufficient time to enter the call. Types of orders: There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the commodity through a limit order. This is done because we recommend the customer to buy above a particular level and he can do so by placing a limit order. For example suppose we have sent the customer to buy Pepper above 35000 and currently it is trading at 34600, if he places a market order, his order will get executed at 34600. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order above 35000. The details of how to place the orders will be explained in the further pages.

Options- Level 1 2 Chapters

This course will take you through the basics of the options markets and how DreamGains advises its clients to buy and sell and hence profit from the same. This course will also brief you on the important details to know to effectively sell Options as a product.

Options and Options markets 2 Sections

This chapter will brief you on the general theory about options as a financial instrument and the Indian options markets.

Basics of Options
Options contracts are instruments that give the holder of the instrument the right to buy or sell the underlying asset at a predetermined price. An option can be a 'call' option or a 'put' option. A call option gives the buyer, the right to buy the asset at a given price. This 'given price' is called 'strike price'. It should be noted that while the holder of the call option has a right to demand sale of asset from the seller, the seller has only the obligation and not the right. For eg: if the buyer wants to buy the asset, the seller has to sell it. He does not have a right. Similarly a 'put' option gives the buyer a right to sell the asset at the 'strike price' to the buyer. Here the buyer has the right to sell and the seller has the obligation to buy. Some of the most popular assets on which options contracts are available are equity stocks and indices(Nifty and Bank Nifty). In simple terms, a trader buys a call option when he expects the market or sock to move up. A trader buys a put option when he expcets the market or stock to move down. Please note that this is different from equity and futures where in if the trader expects the price to fall he short sells the equity or futures. Let us understand this concept with an example. Suppose DreamGains sends out a call to its customer which is as follows Buy Nifty 5400(March) Call Option between 100-102 SL- 90 TG-108/115 1) Buy Nifty 5400(March) Call Option between 100-102 First we need to obrserve whether it is a buy or a sell call. In this case it is a buy call. 2) Buy Nifty 5400(March) Call Option between 100-102 Next we need to observe whether the options message given to the customer is for Nifty or an individual stock. This is called the underlying asset. In this case the underlying asset of the option is Nifty. 3) Buy Nifty 5400(March) Call Option between 100-102 Next we need to observe what is the 'strike price' of the Nifty option. There are several contracts of Nifty that are traded in the market and each contract has its inherent movement based on its supply and demand. These contracts are differentiated from one another by their strike price. In this case the strike price of the option in 5400. Please note that 5400 does not indicate the price at which Nifty is trading. It is just a notional number(or name) of the contract. In simple terms, lets assume that Nifty spot is trading at 5300 and based on the analysis, you expect the price of Nifty to move up to 5400. In this case you would buy a Nifty 5400 contract since you expect Nifty to move to 5400 in the near future. There are several such contracts that trade simultaneously in the market like 5250,5300, 5350,5400.5450,etc. 4) Buy Nifty 5400(March) Call Option between 100-102 Next we need to observe which month the contracts is traded in. Since options are also part of derivative they have similar characteristics of a future. In India Options contracts are traded for a

maximum period of three months. In simple terms, at any given point of time there are 3 options contract that are traded having the same strike price. For example lets assume that this January, so the 3 contracts that will be available for trade are January(current), February(next) and March(far). Each of these contracts expire expire on the last Thursday of their respective months same as in futures. Hence when, Janaury options contracts expire, April options contracts are traded and hence the 3 month cycle rolls over. 5) Buy Nifty 5400(March) Call Option between 100-102 Next we need to observe whether the type of option is a call option or a put option. In this case it is a call option and that obviously means that the analsyst foresees a rise in prices of the underlying asset. Suppose the call was to buy a Nifty 5400 put option, this would mean that the analyst is betting on a fall in prices in the underlying asset(Nifty). 6) Buy Nifty 5400(March) Call Option between 100-102 Finally one has to observe the buying price of the option contract or the 'premium'. The premium is the price at which the trader buys the Nifty 5400(march) call option. Please note that 5400(strike) price is NOT the price at which the trader buys the contract but 100(premium) is the price at which the trader buys the contract. Indian Options market: As mentioned in the previous modules, there are 2 exchanges in India namely NSE and BSE. Options are only traded in NSE. Options are mainly divided into 2 components namely- Index and stock options. Index options include option contracts for Nifty and Bank NIfty. Stock options include those option contracts whose underlying asset is the individual stock. Not all scrips that are there in spot market are traded in the optionsmarket Out of the 2000 scrips there are around 200-250 stocks that are traded in the options segment All the scrips that are traded in the futures market are traded in the options market. A list of these stocks is updated in the NSE website It is at the discretion of NSE to add and remove stocks from the futures and options segment. However, this information of any addition or deletion will be intimated to the traders through circulars released by NSE. Since options are also derivatives, they have lot sizes. The lot sizes are same as that of the futures contracts. Any change in the lot size will also be intimated by NSE through a circular.

Options Product 7 Sections

This chapter will brief you on the Options product that DreamGains advises its customers on. Type of calls: Below are some of the features of the product that one has to keep in mind. Each one of these points will be explained in detail in the further pages

All the calls provided will be for intraday An average of 1-2 calls will be sent to customers on a daily basis Only 2 calls will be running simultaneously The risk reward ratio of the call will be 1:1 i.e. The stop loss and target 1 Sectionwill be worth 8% each. This will be explained in detail in the further pages Short selling calls will NOT be given in options. This will be explained in the further pages. Unlike other products, buy above and sell below messages wont be sent to customer. In options 'buy between' messages will be sent to customer.

Buy Sesa Goa(April) Put option between 10-10.1 SL- 9.20 TG-10.8/11.5 Buy Nifty 5400(March) Call Option between 100-102 SL- 90 TG-108/115 All calls will have a stop loss and 2 targets Tg1 will be of 8% and Tg2 at 15% from the Buy Price. The calls will be sent to customers via SMS and Yahoo messenger Investment required: Options are a very attractive asset class since the investment required is very less when compared to its derivative counterparts. The same can be explained by comparison. Buy Nifty 5400(March) Call Option between 100-102 SL- 92 TG-108/115 Since the lot size for Nifty option is 50, the investment required to buy 1 lot of Nifty is 100(buying price/premium) multiplied by 50(lot size)= Rs 5000. Buy Nifty futures above 5400 SL- 5375 TG-5425/5450/5475 Here the investment required will be 5400(buying price) multiplied by 50(lot size)= Rs.2,70,000. This after margin of 10% would still amount to Rs.27,000 which is still more than 5 times the investment in options. Hence on an average if one wants to trade in DreamGains options calls, he needs an investment of 50-75k. Risk reward ratio: As mentioned before the risk reward of all the calls given will be 1:1 i.e. the target and Stop loss will be worth 8% each. The 2nd Target will be worth 15% from the buy price. Lets take an example where in the the customer is told to Buy Reliance Industries options at Rs40. The lot size for Reliance Industries futures is 1000. Hence, if the customer wants to buy 1

lot of Reliance Industries options, he has to buy a minimum of 1000 shares. Since the risk reward ratio in Options is 8%, the stop loss and target is calculated as 8% from the buying price. In this case the SL and Tgt will be Rs 3.20. Hence the complete call will be as follows Buy Reliance Industries(March) Call options between 40-40.5 SL- 36.8 TG- 43.2/46 In simple terms it means that if a customer has bought 1 lot of options, the maximum he will lose if it hits the stop loss is 8% and the maximum he will gain if it hits the first target is 8%. In all the calls the risk reward ratio of 1:1 and 8% will be maintained. This risk reward ratio of 1:1 is maintained in all the calls because the customer has to distribute his risk among all the calls. An example of the same is as below. If the customer has an investment of 4 lots, he has to divide his investment into 2 parts as mentioned in the above page i.e. 2 lot to be invested in both the calls. Suppose 2 calls are sent to the customer as below Call 1 Buy TCS(Mar) 1250 Put options between 20-20.2 SL-18.4 TG- 21.6/23 Call 2 Buy Nifty(Mar) 5400 Call option between 100-101 SL-92 TG-108/115 In call 1 he has to buy 2 lots of Sesa Goa 250 put options In call 2 he has to buy 2 lots of Nifty 5400 call options TCS Lot size: 250 Nifty Lot size: 50 Suppose a scenario arises where in Call 1 the 1st target is achieved he books both lots and makes a profit of 800.00 Rs. Suppose the call 2 fails and hits the stop loss, then the customer makes a loss of -800.00 Rs. Hence the customer is neutral at the end of the day as he has lost 800 Rs. in one call and made a profit of 800 Rs in the other. Suppose the customer had traded in 1 lot in the first call and 3 lots in the second call Profit in Call 1 is 400.00 Rs. (since he has bought 1 lot in call 1) Loss in Call 2 is -1200.00 Rs. (since he has bought 3 lots in call 2) Hence at the end of the day the customer will be in a net loss of -800.0 Rs. Therefore, it is absolutely vital for the customer to invest equally in all the calls. Maintaining a stop loss: In every call that is sent to the customer a Stop loss(SL) is mentioned.

 The concept of a stop loss is to limit the loss of the customer to 8%. Suppose the analysis says that the options premium will rise, but due to some reason the analysis fails, the customer has to book his loss to a limited extent. Since no analysis is 100% accurate, the Stop loss becomes an insurance against a failure of the same. Suppose the customer does not maintain a stop loss, the customer can lose more than 8% where as he could have limited his loss at 8% Failure to maintain a stop loss can substantially erode the traders capital and hence limit his ability to take positions in futures profitable calls. It is very important to maintain a stop loss while trading. This will help in minimizing the loss in case the options premium is moving is the unfavorable direction. Assume that the option bought falls down drastically, in this case one may end up with huge loss. But stop loss will help restrict the loss to a certain limit. Buy between a range: This is a different concept where in we do not send a call to buy above or sell below but a buy in the range. This is done because we track the level of the underlying asset(Index or Stock) and once it breaks the level in the underlying we send the option call to the customer. Let us try to understand the concept of options with the following table Scenario Put premium Call premium Strategy Market rises Decreases Increases Buy a call/Short a put Market falls Increases Decreases Short a call/Buy a put There are 2 reasons why we dont give short selling calls in Options First is that the in short selling calls, the risk is unlimited and the profit is limited. Second is that the margin required is very high in short selling calls. Types of orders: There are 3 main types of orders when a customer wants to buy a stock on the terminal he/she has. Market Order: When a BUY market order is placed, the ask price is paid, kind of like the buy it now. Chances are that the order will get filled immediately but often at a higher price than the last price. If a SELL market order is placed, the same happens except the shares are sold at the bid price. Limit Order: A limit order is where the price is specified in which to buy/sell the stock to avoid any surprises. The downside is waiting until a buyer/seller hits the limit price which may or may not happen. Stop: This is a little more advanced where the stop price is set for either buying or selling. For example, a stop loss sell order is set to minimize the loss that a trader is willing to take. When the stop price is reached, a market order is sent out at that price. We recommend the customer to buy/sell the option through a limit order. This is done because we recommend the customer to buy between a particular range and he can do so by placing a limit order.

 For example suppose we have sent the customer to buy a stock option between 100-102 and currently it is trading at 95, if he places a market order, his order will get executed at 95. However, this is not the price at which we have recommended the customer to buy. Hence he has to place a limt order between 100 and 102. The details of how to place the orders will be explained in the further pages. USPs of the product: GUARANTEED RETURNS (25%) ACCURACY OF 80-85% HIGH RETURNS LOW INVESTMENT CALLS IN BOTH INDEX OPTION AND STOCK OPTION INTRADAY CALLS RESEARCH SUPPORT

Fundamental analysis- Level1 3 Chapters

This chapter will take you through the basics of fundamental analysis and the implications of the same on the market. Basics of Fundamental Analysis 2 Sections General theory of fundamental analysis and its uses When an investor is looking to invest in any particular tradable item one is looking for capital appreciation, the investment can be in a form of stock, precious metals, real estate, currency or any tradable commodity. The prudent investor will study the fundamentals(or the most important factors) which correlate with that tradable item. Fundamental analysis of stocks is the research tool by which we are able to forecast the value of a stock and its future earnings based on factors like supply and demand , economic conditions , managements ability and its balanced sheet and the past performance of the company. Fundamentals are the reason why there is price fluctuations in the commodity or a stock. Our prime focus is on stocks. Stocks are considered to be one of the most volatile tradable items we have today. The stock react differently in different economies, for example the stock traded in some of the developed markets like US and Germany are less volatile when compared to developing markets like the BRIC(Brazil , Russia, India, China), the reasons are that the earnings pertaining to the companies have peaked and there is less possiblility of future capital appreciation. When such a state is reached the investor pulls out money from such markets and tries to invest them in markets which have possiblities of a capital appreciation. This is the main reason why we see such huge foreign inflows in India.

 However when there is higher reward there is higher risk that is associated, that is why when there is an economic debacle we see riskier markets lose more than the developed markets. Stocks react to any news or rumours which may or may not affect the stock. Markets always have a tendency of overreacting, which gives an investor an opportunity of investing. We see significant amount of volatility after a company declares its results, if the result is better than what the market expect we see a price appreciation and see a correction if the results are lower than the market expectations. However this price movement may not be justified all the time.

Unjustified movement in stocks:

The main reason why there is unnecessary movement in the stock prices is that there are other players in the markets mainly the technical analysts and traders, who tend to buy or sell the stock based on charting tools. A technical analyst tends to buy a particular stock when the stock price moves above this Resistance and sells below this Support level. This leads to significant upmove or downmove and the price may not reflect the actual price the stock deserves. This gives an opportunity for a fundamental analyst to buy or sell the stock. A fundamental analyst or an investor will buy a stock if the stock when the stock is well below its intrinsic value and sells a stock if its well above its intrinsic value. A fundamental analyst has a mentality of an investor and has a longer time horizon of a few months to a few years. Prerequisites of Fundamental analysis 1 Section This chapter will take you through some of the most common factors used in fundamental analysis Profit: Every companies objective is to earn profit. There are two types of profit gross profit and operating profit. Gross Profit by definition is the Price at which sales of goods or services are made minus the cost price of a good or services Operating profit is the Gross profit minus the operating cost PE Ratio: This is a ratio of the Price per share to the EPS. A high PE ratio tells us that the markets are willing to pay high price for the stock. We compare the PE ratio with the competitors and evaluate weather the price of the stock is overvalued. PEG Ratio: This is a ratio of a Price of the stock to the future earnings growth. A lower than the competitor indicates that the firm is cheaper than its peers. Balance Sheet: A balance sheet is a snapshot the companies financial condition on a particular date. The balance sheet is the most powerful tool for the investor as it explains the financial health of the company. A balance sheet first part of the balance sheet tells us the source of money or funds for the business and the second part tells us where these funds are used. The financial statement is called a balance sheet because the source of funds= Application of fund. Debt: It is the amount of money one party borrows from the other. If the company does not have sufficient funds that can sponsor an expansion plan or is having difficulty in business operations due to the lack of funds, in such a scenario the company goes borrows money from

the bank or a private lender or a venture capitalist to raises money. In return the company will have to either pledge its shares or any other security and also pay interests on it. Dividend yeild: It is the ratio of the dividend issued by the company to the price of the stock on that pacticular day. Dividends are tax free, generally high yeilding companies are mature companies who dont have expansion plans and have strong market share. Long term debt which a company has to pay is the amount of money that the company has borrowed and which it has to repay after a period of more than one year. Many companies do not disclose this data in their Annual Reports and hence it is an estimation. Short term debt is the amount of money that the company has borrowed and which it has to repay within a period of one year. The ability of a company to raise money depends on the financial health of the company. If the company is able to make profits at a higher rate than the rate of interest that it pays then the company can grow at a rapid pace, however due to the an economic slowdown or lack of demand of a particular good or service if the company is not able to generate enough sales and profit this will lead to deceleration of growth. Hence one must choose their investment taking its debt levels into consideration.

Macroeconomic factors 1 Section

This chapter will brief you on some of the macroeconomic indictors that affect the financial markets: The macro economics is the most important factors which drive the stock market. These include the GDP growth forcast, the currency situation, commodity prices,Inflation,and the fiscal deficit. GDP: GDP is an indicator which explains the health of the economy.It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy.If the GDP value of a country is growing it indicates an healthy economic growth.India's GDP growth last year was at 8.5%, this year it is expected anywhere between 7.5-8%. Currency: Currency movement needs to be tracked closely as major goods and services will be valued in the domestic currency. For a country like ours who depend heavily on imports and has a large fiscal deficit a currency depreciations spells havoc for the nation.The reason for that is that the country will automatically be paying more as the domestic currency will have to be converted into the standardized currency like the dollar or Euro. One must note that the currency always appreciates or depreciates with respect to another currency. As India is an heavy importer a weak currency will worsen the economic health of the country. Crude Oil: Crude oil is the backbone of a nation, and especially for a growing economy as there is heavy econmic activity and large fuel consumption. Crude is the raw material for petrol, diesel and kerosene oil. Fuel is used by every industry and it directly related to the prices of all the commodities in the country. Higher oil prices tend to increase the price of all essential items and is a matter of concern. Inflation: We have all seen prices of commodities like petrol, milk, chocolates and other items of day to day consumption increase in their prices significantly, the key reasons to this being inflation. Is simple words inflation is the rise in prices of commodities which erode purchasing power of the nation over a period of time. In India the Wholesale Price Index (WPI) is used extensively as a measure of inflation . Primary articles (including food and non food based primary items) weightage is about 20% Fuel and Power has about 15% weight and

manufactured goods have weightage of about 65%. Fiscal deficit: When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits. CRR: Cash reserve ratio is the minimum amount of cash which the banks need to maintain with the central bank. This is regulated by the central bank.This is used by the central bank to regulated the flow to money into the economy. SLR: Statutory liquidity ratio is the amount of liquid assets such as precious metals(Gold) or other approved securities, that a financial institution must maintain as reserves other than the cash Repo Rate: Reserve bank charges some interest rate on the cash borrowed by banks. This rate is usually less than the interest rate on bonds as the borrowing is collateral. This interest rate is called repo rate. Reverse Repo rate: It is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always happy to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates.

Technical analysis- Level1 1 Chapter

This chapter will take you through the basics of technical analysis and the implications of the same on the market.

Basics of Technical Analysis 7 Sections

General theory of technical analysis and its uses All of us unintentionally have used technical analysis in our lives. Just remember a day in the shopping mall, if we see anybody buying any item more than usual quantity of any good it usually catches our attention, and we take a note of it. In term of the markets jargon the person who is analysing and buying the good in sufficiently large quantity is a fundamental analyst and a technical analyst is a person observing the billing counter and takes his buying decision based on what people are buying. A technical analyst studies the volume, patterns and previous prices beforing trading an item. Assumptions of technical analysis 1. The Market Discounts Everything A major criticism of technical analysis is that it only considers price movement, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company - including fundamental analysis. Technical analysts believe that the company's fundamentals, along with broader economic factors are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market.

2. Price Moves in Trends In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption. 3. History Tends To Repeat Itself Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves.

Types of trend:
Trend: The basic assumption of technical analysis is that price of a security moves in trends. A trend is a time measurement of the direction in the prices. There are three types of trends based on time horizon: 1. Primary trend 2. Intermediate trend 3. Short term trend Primary trend last anywhere between 9 months two a couple of years and is an indication of attitude of the investor to the given fundamentals. Bull markets are generally longer as the movement on the upside is slow. The Bear markets generally last are shorter as the corrections are rapid. Intermediate trend last anyway between 6 weeks to 9 months. The intermediate trend is weaker if it is of any opposite type with respect to the primary market. A short term trend last anywhere between 2 -4 weeks and is the weakest trend. Types of Trends based on movement: 1. Uptrend 2. Sideways 3. Downtrend Uptrend The market is said to be in an uptrend if the overall price movement of a security is moving up. This is indicated when the current top or peak is higher than the previous high or peak and the current low is higher than the previous low. This trend will be violated when the subsequent high is lower than the previous high or the subsequent low is lower than the previous low. Sideways trend The market is said to be in consolidation or sideways trend when the peak and troughs are at the same level. The figure show a security in sideways trend, a sideways trend is followed by an uptrend or downtrend. The longer the sideways trend the more significant is the follow up move. Downtrend The market is said to be in a downtrend when the price movement of a security when the overall direction is downward. A formal downtrend occurs when each successive peak and trough is lower than the ones found earlier in the trend.

Candlesticks- An introduction:
CandleStick Patterns:The Japanese began using technical analysis to trade rice in the 17th century. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that we use today. A candlestick chart,has a data set that contains open, high, low and close values for each time period . The hollow or filled portion of the candlestick is called "the body" (also referred to as "the real body"). The long thin lines above and below the body represent the high/low range and are called "shadows" (also referred to as "wicks" and "tails"). The high is marked by the top of the upper shadow and the low by the bottom of the lower shadow. If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the body representing the opening price and the top of the body representing the closing price. If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body representing the opening price and the bottom of the body representing the closing price.

Candlestick patterns:
Generally speaking, the longer the body is, the more intense the buying or selling pressure. Conversely, short candlesticks indicate little price movement and represent consolidation. Long white candlesticks show strong buying pressure. The longer the white candlestick is, the further the close is above the open. This indicates that prices advanced significantly from open to close and buyers were aggressive. While long white candlesticks are generally bullish, much depends on their position within the broader technical picture. After extended declines, long white candlesticks can mark a potential turning point or support level. If buying gets too aggressive after a long advance, it can lead to excessive bullishness. Long black candlesticks show strong selling pressure. The longer the black candlestick is, the further the close is below the open. This indicates that prices declined significantly from the open and sellers were aggressive. After a long advance, a long black candlestick can foreshadow a turning point or mark a future resistance level. After a long decline a long black candlestick can indicate panic or capitulation. The upper and lower shadows on candlesticks can provide valuable information about the trading session. Upper shadows represent the session high and lower shadows the session low. Candlesticks with short shadows indicate that most of the trading action was confined near the open and close. Candlestick with long shadows show that prices extended well past the open and close. Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the session, and bid prices higher. However, sellers later forced prices down from their highs, and the weak close created a long upper shadow. Conversely, candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the session and drove prices lower. However, buyers later resurfaced to bid prices higher by the end of the session and the strong close created a long lower shadow.

Doji Doji are important candlesticks that provide information on their own and as components of in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. The word "Doji" refers to both the singular and plural form. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. Neither bulls nor bears were able to gain control and a turning point could be developing. Engulfing patterns There are two types of engulfing patterns bearish engulfing and bullish engulfing Bearish Engulfing Pattern: A chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one.This implies that the bulls are losing momentum and the bears are gaining momentum and the price will correct. Bullish Engulfing Pattern:A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day. The pattern indicates that the bears are losing momentum and the bulls are gaining momentum.

Indicators:
RSI(Relative Strength Index):A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. As you can see from the chart, the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. In bear market overbought levels are at 65 and oversold levels at 25 and in bull market overbought level are at 75 and oversold levels are at 35.

Moving averages:
Simple Moving Average: This is a used by very commonly used by traders to determine trends the tradable securities.A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Simple moving average weights all the data equally ie the data for the current day has the same weight as the data a week back. We can have the simple moving average for different time durations . Most commonly used are 20 days , 50 days and 200 days Exponential Moving Average(EMA): A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. EMA is used frequently by traders as it helps them evaluate trends faster than the simple moving average.

We can have the Exponential moving average for different time durations . Most commonly used are 20 days , 50 days and 200 days.

HR Policies 1 Section
This chapter will take you through the HR policies that DreamGains follows: Mission Statement To provide our clients with wide-ranging, secured and finest financial solutions to achieve sustained growth. The primary goal of DreamGains, and yours, as one of its employees, is to live our mission statement and continue to be an industry leader. History DreamGains Financials India Private Limited, since its inception in 2004 as an independent and privately owned organization, has come a long way and today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide "Real value for money" to all its clients. We at DreamGains share a set of five core values derived from the group's early beliefs which till date drive all our business decisions. These values are: Integrity, commitment, passion, seamlessness and speed. The company has been distinctive in its adherence to business ethics and commitment to corporate social responsibility. The company that started with nifty tips is now giving tips on stock cash and commodity as well and thus has grown significantly in recent years with a focus on value creation. It all started with one man's optimism and belief that to make the best in the world, one had to draw upon and amalgamate the best that the world has to offer. Goals, Principles and Values: We at DreamGains want to earn and be worthy of our customer's trust and provide them with the finest Indian Stock Market Tips. We want to be continually responsive towards our clients and strive relentlessly to improve. The Five Core Values are: Integrity, Commitment, Passion, Seamlessness and Speed Work Timings and Attendance: Employees are expected to arrive at work before they are scheduled to start and be at their work station productively engaged by the scheduled start time ie 9am in the morning. DreamGains views attendance as an important facet of your job performance review. All unapproved absences will be noted in the employees personnel file. Excessive absences will result in disciplinary action, up to and including termination. The break timings will be duly explained to you by your supervisors. Company Equipments: The Company will provide you with the necessary equipment to do your job. None of this equipment should be used for personal use, nor removed from the physical confines. It is forbidden to install any other programs to a company computer without the written permission of your supervisor. The telephone lines at DreamGains must remain open for business calls to service our customers. Employees are requested to discourage any personal calls - incoming and outgoing - with the exception of emergency calls. No long distance calls which are not strictly business-related are to be made on company phones. Confidentiality: DreamGains requires all employees to keep matters related to their salary structure confidential and to discuss them only with their supervisors. Should an occasion arise in which you are unsure of your obligations under this policy, it is your responsibility to consult with your supervisor. Failure to comply with this policy could result in disciplinary action, up to and including termination.

Dress Code: As an employee of DreamGains, we expect you to present a clean and professional appearance when you represent us, whether that is in, or outside of, the office. Management, sales personnel and those employees who come in contact with the public, are expected to dress in accepted corporate tradition. It is mandatory to come in Business Formals from Monday to Thursday and Business Casuals are allowed on Friday and Saturday. Kurtas, Salwar-Kameez, Saree, Knee length skirts, Formal Pants, dressy two-piece knit suits are acceptable. Dress and skirt length should be at a length at which you can sit comfortably in public. Short, tight skirts that ride halfway up the thigh are inappropriate for work. Mini-skirts, shorts, sun dresses, beach dresses, and spaghetti-strap dresses are inappropriate for the office. Inappropriate slacks or pants include any that are too informal. Similarly for men Shirts, Pants, Dockers, Suits make formal attire. Inappropriate attire would include jeans, sweatpants, exercise pants, Bermuda shorts, and shorts. No dress code can cover all contingencies so employees must exert a certain amount of judgment in their choice of clothing to wear to work. If you experience uncertainty about acceptable, professional formal business attire for work, please ask your supervisor or your Human Resources staff. Leave Policy: You will be entitled to leave as per the Companys Standard Policy. Management is having an authority to change the leave policy whenever it feels necessary. During probationary period you are eligible for 3 days sick days leave which is stretched into 6 months period. After the confirmation period, you are liable for 1.5 days leave per month. In addition you can also avail the holidays declared by the Company for festivities etc. The leaves which have not been utilized will be carried forward onto the next year. A employee can carry forward upto a maximum of thirty paid leaves. An employee can encash leaves only when there are more than 25 leaves in the leave balance. DreamGains views attendance as an important facet of your job performance review .Any unapproved/unscheduled leaves will lead to reduction in Attendance Allowance along with Loss of Pay for the Day. Should you remain absent from work, without any reasonable explanation, for more than three (3) consecutive days, it will be presumed that you are no longer interested in working for the Company and have abandoned its services, thereby terminating your contract of service. In such case, you will not be entitled to any statutory compensation from the Company. If you take leaves 3 or more days based on medical grounds needs to submit the Medical Certificate from the Certified Medical Practioner Performance Appraisal: Reviews and salary increments are based on your performance during the employment period in Company. You will be liable for a review once you complete your probation period. After that performance reviews are conducted once in a year with an informal review every six months. Increments will be based upon your performance and you will be entitled to the same if your performance is found to be satisfactory during the time of service in terms of efficiency, regularity, and punctuality. Increments will be withheld, if your performance is found unsatisfactory. Increments can be accelerated in case of exceptionally good performance. Grant of increments is not automatic. Employee Referral Programs: Cash awards may be given to employees for referring new employees provided they complete 3 months with the company. The company decides on the amount of award and service time new employees must put in prior to the referring employee collecting on award. Rehiring Policy: An ex-employee can be considered for rehiring only after three months from the resignation date and will have to go through the formal recruitment process. Rehiring process initiation is solely on the discretion of the management. Payroll: The payroll cycle starts from the 26th of the month to the 25th of the next month but it is

released only on the last working day of the month. Open Door Policy : Open, honest communication between managers and employees is a day-to-day business practice. Employees may seek counsel, provide or solicit feedback, or raise concerns within the company. Exit Interviews : Employees have to participate in exit interviews, provide proper training for the replacement and return all company property before leaving for the smooth transition.

Premier Products- Level1 6 Chapters

This module will take you through all the premier products that DreamGains as a company offers its customers. Premier products: DreamGains offers a guranteed refund service on most of the regular products. These include Stock cash, Stock futures, Nifty futures, MCX Commodities and Options. Each product has a guranteed return associated with it which means that if the customer does not get the return promised at the end of the first month of his service, he can claim for a refund of his complete subscription amount. The common factor among all these premier products is that the return is guaranteed for the first month of the customers service and not henceforth. Each of these premier products will be explained in detail in the further chapters. Each product has its terms ad conditions attached to it for the customer to claim for a refund.

Stock cash premier 2 Sections

This chapter will take you through the stock cash premier product and the terms and conditions associated with it. Product name Stock cash premier Returns guaranteed 10% Exposure 2 times Minimum package Quarterly In the stock cash premier package a 10% ROI is guaranteed in the first month of the service failing which the customer can claim a refund of his entire subscription amount. We will maintain a track sheet of our calls and given to premier customers and the calculation of the returns will be done 1 month from the date of commencement of the customer service. The refund of the subscription amount is guaranteed only for the first month of the service provided the return of 10% is not achieved. Terms and Conditions- Stock Cash Premier:

Please review these policies carefully as they are the terms of sale that govern your purchase with DreamGains Financials India Private Limited. To obtain a refund on our Stock Cash Premier product, you must adhere to the following guidelines:Please find our Terms & Conditions below. You must trade on all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. You must invest equally in all the calls throughout the month. It is mandatory that you have to book profits when we send the message to do so. It is mandatory that you have to book full profit at 0.8% of the buy/sell level. Suppose the buy is at 500 and stop loss is at 495, you have to book 100% of your profit at 0.8% of 500 i.e. at 504; and if the stop loss is hit at 495, then you have to exit full at 495. 2 times intraday exposure will be considered to calculate the profit. Profit booking strategy can be variable according to market conditions. Services cannot be kept on hold during the first month (From the service start date). You should have the required margin to trade in all the calls. Suppose the buy is at 500 and stop loss is at 495, you have to book 100% of your profit at 0.8% of 500 i.e. at 504. Customers can judge the performance of our product over a period of first 30 days of their subscription and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. Service cannot be kept on HOLD during the first month (From the service start date) The customer is liable for a refund only, wherein the monthly return is less than 10% on strict adherence to the above mentioned terms and conditions. Please allow 5 business days for the refund to get processed. If you have any questions or suggestions about this refund policy please email us at refunds@dreamgains.com

Stock futures premier 2 Sections

This chapter will take you through the stock futures premier product and the terms and conditions associated with it.

Product name

Stock futures premier

Returns 12% guaranteed Exposure 10 times Minimum package Quarterly In the stock futures premier package a 12% ROI is guaranteed in the first month of the service failing which the customer can claim a refund of his entire subscription amount. We will maintain a track sheet of our calls and given to premier customers and the calculation of the returns will be done 1 month from the date of commencement of the customer service. The refund of the subscription amount is guaranteed only for the first month of the service provided the return of 12% is not achieved.

Terms and Conditions- Stock Futures Premier:

Please review these policies carefully as they are the terms of sale that govern your purchase with DreamGains Financials India Private Limited. To obtain a refund on our Stock Future Plus product, you must adhere to the following guidelines:- Please find our Terms & Conditions below. You must trade on all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. You have to trade minimum on 2 lots. It is mandatory that you have to trade in a minimum 2 lots or multiples of the same i.e. 4,6,8, etc. You must invest equally in all the calls throughout the month. It is mandatory that you have to book 100% of your profit when we send message to book full profit range. And if the stop loss is hit, then you have to exit full at SL level. 10 times intraday exposure will be considered to calculate the profit. Profit booking strategy can be variable according to market conditions. Services cannot be kept on hold during the first month (From the service start date). You should have the required margin to trade in all the calls. Sample Call BUY RIL FUTURES ABOVE 800 SL-792 TG-808 BOOK FULL PROFIT IN RIL FUTURES BETWEEN 806 AND 808

Customers can judge the performance of our product over a period of first 30 days of their subscription

and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. The customer is liable for a refund only, wherein the monthly return is less than 12% on strict adherence to the above mentioned terms and conditions. Please allow 5 business days for the refund to get processed. If you have any questions or suggestions about this refund policy please email us at refunds@dreamgains.com

Nifty futures premier 2 Sections

This chapter will take you through the Nifty futures premier product and the terms and conditions associated with it.

Product name

Nifty futures premier

Returns 8% guaranteed Exposure 10 times Minimum package Quarterly In the Nifty futures premier package a 8% ROI is guaranteed in the first month of the service failing which the customer can claim a refund of his entire subscription amount. We will maintain a track sheet of our calls and given to premier customers and the calculation of the returns will be done 1 month from the date of commencement of the customer service. The refund of the subscription amount is guaranteed only for the first month of the service provided the return of 8% is not achieved.

Terms and Conditions- Nifty Futures Premier: Please review these policies carefully as they are the terms of sale that govern your purchase with DreamGains Financials India Private Limited. To obtain a refund on our nifty premier product, you must adhere to the following guidelines:Customers can judge the performance of our product over a period of first 30 days of their subscription and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. The customer is liable for a refund only, wherein the monthly return is less than 8% on strict adherence to the above mentioned terms and conditions.

 You must trade in all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. It is mandatory that you have to trade in a minimum 2 lots or multiples of the same i.e. 4,6,8, etc. You must invest equally in all the calls throughout the month. If it is a Nifty call, it is mandatory for you to book 100% profit at 15 points from the buy or sell level. If it is a Bank Nifty call, it is mandatory for you to book 100% profit at 25 points from the buy or sell level. Suppose Nifty buy call is given above 5500, you have to book full profit at 5515. Suppose Bank Nifty sell call is given below 11400, you have to book full profit at 11375. 10 times intraday exposure will be considered to calculate the profit. Profit booking strategy can be variable according to market conditions. Services cannot be kept on hold during the first month (From the service start date). You should have the required margin to trade in all the calls. Customers can judge the performance of our product over a period of first 30 days of their subscription and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. The customer is liable for a refund only, wherein the monthly return is less than 8% on strict adherence to the above mentioned terms and conditions. Please allow 5 business days for the refund to get processed. If you have any questions or suggestions about this refund policy please email us at refunds@dreamgains.com

Options premier 2 Sections

This chapter will take you through the Options premier product and the terms and conditions associated with it.

Product name Options premier Returns guaranteed 25% Exposure 0 times Minimum package Quarterly In the Options premier package a 25% ROI is guaranteed in the first month of the service failing which the customer can claim a refund of his entire subscription amount. We will maintain a track sheet of our calls and given to premier customers and the calculation of the returns will be done 1 month from the date of commencement of the customer service.

 The refund of the subscription amount is guaranteed only for the first month of the service provided the return of 25% is not achieved.

Terms and Conditions- Options Premier: Please review these policies carefully as they are the terms of sale that govern your purchase with DreamGains Financials India Private Limited. To obtain a refund on our Options Premier product, you must adhere to the following guidelines:- Please find our Terms & Conditions below.
You must trade in all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. It is mandatory that you have to trade in a minimum 2 lots or multiples of the same i.e. 4,6,8, etc. You must invest equally in all the calls throughout the month. It is mandatory that you have to book full profits at 8% from the buying price. Suppose the buy is at 100 you have to book full profit 108. And the stop loss is hit at 92 then you have to exit all lots at 92. Profit booking strategy can be variable according to market conditions. Services cannot be kept on hold during the first month (From the service start date). You should have the required margin to trade in all the calls. Customers can judge the performance of our product over a period of first 30 days of their subscription and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. The customer is liable for a refund only, wherein the monthly return is less than 25% on strict adherence to the above mentioned terms and conditions. Please allow 5 business days for the refund to get processed. If you have any questions or suggestions about this refund policy please email us at refunds@dreamgains.com

Commodity premier 2 Sections

This chapter will take you through the Commodity premier product and the terms and conditions associated with it.

Product name Commodity premier Returns guaranteed 15%

Exposure 20 times Minimum package Quarterly In the Commodity premier package a 15% ROI is guaranteed in the first month of the service failing which the customer can claim a refund of his entire subscription amount. We will maintain a track sheet of our calls and given to premier customers and the calculation of the returns will be done 1 month from the date of commencement of the customer service. The refund of the subscription amount is guaranteed only for the first month of the service provided the return of 15% is not achieved.

Terms and Conditions- Commodity Premier: Please review these policies carefully as they are the terms of sale that govern your purchase with DreamGains Financials India Private Limited. To obtain a refund on our Commodity Premier product, you must adhere to the following guidelines:- Please find our Terms & Conditions below.
Customers can judge the performance of our product over a period of first 30 days of their subscription and after that they will get a buffer period of one week to claim their refund after submitting their trading statements. Claims made after one week buffer period and before the first 30 days of their subscription will not be entitled for any refund in any circumstances. You must trade on all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. It is mandatory that you have to trade in a minimum 2 lots or multiples of the same i.e. 4,6,8, etc. You must invest equally in all the calls throughout the month. It is mandatory that you have to book full profits when we send message to book full profit range. 20 times intraday exposure will be considered to calculate the profit. Profit booking strategy can be variable according to market conditions. Service cannot be kept on HOLD during the first month (From the service start date) You should have the required margin to trade in all the calls. The customer is liable for a refund only, wherein the monthly return is less than 15% on strict adherence to the above mentioned terms and conditions. Please allow 5 business days for the refund to get processed. If you have any questions or suggestions about this refund policy please email us at refunds@dreamgains.com

Modes of payment 1 Chapter

This modle will brief you on the different modes of payment that DreamGains has to collect payment from customers.

Payment Modes
8 Sections An introduction

Payment Modes:
There are many ways to transfer funds these days. Be it conventional methods like cash deposits or modern methods like online funds transfer. The core banking solutions and high use of technology have made transactions easy and fast. The following document gives you an in depth knowledge of the various modes of payment accepted at DreamGains. We accept: Cash Cheque National electronic funds transfer Net Banking Debit Cards Credit Cards

Cash deposit:
We accept cash deposits in all the banks we have account in. ICICI Bank ICICI Bank accepts cash from 09:00 to 18:00 on week days and from 09:00 to 14:00 on Saturdays in most of the branches. However, there are branches which work from 08:00 to 20:00 in some metro and cosmopolitan cities. Please refer the below mentioned link for details: http://icicibank.com/Personal-Banking/pdf/timing-3.pdf

HDFC Bank HDFC Bank accepts cash from 09:00 to 15:30 on weekdays and from 09:00 to 13:00 on Saturdays. State Bank of India (SBI) SBI accepts cash from 09:00 to 15:30 on weekdays and from 09:00 to 13:00 on Saturdays. Note: Some branches of SBI do not accept out station cash deposits after 14:00. Axis Bank Axis Bank accepts cash deposits from 09:30 to 15:30 and from 09:30 to 13:30 on Saturdays.

Cheque deposits:
There are two possibilities in cheque deposits: The time required to get the amount credited to our account depends on how the customer has deposited the cheque and what bank cheque has he or she deposited. 1. Same Bank Cheque Deposit 1. Over the counter ICICI, SBI and Axis 10 15 minutes; HDFC 3-4 hours 2. In branch drop box Next day or sometimes same day 3. In ATM drop box Maximum of 3 days (There is no clearing on Saturdays and Sundays) 2. Different Bank Cheque Deposit 1. Over the counter All Banks 2 days 2. In branch drop box 3 4 days 3. In ATM drop box 1 week (There is no clearing on Saturdays and Sundays)

National Electronic Funds Transfer (NEFT):

This is a mode where funds are transferred electronically from one bank to another. The customer can have any bank account (Nationalised Commercial Bank) and he or she can transfer funds to our accounts using this facility. This may take anywhere between 1 hour and 4 hours depending on the traffic. For further details please refer the link below: http://www.rbi.org.in/scripts/FAQView.aspx?Id=60

Net Banking:
This facility is available with almost all the banks today. Here the customers having internet banking facility can use their user ID and password for making online transactions. The customer has to add DreamGains Bank account as a beneficiary account and once confirmed, he or she can transfer funds from his or her account to our account. The time taken to reflect in our accounts again depends on which bank account the customer has. ICICI to ICICI: Real time SBI to SBI: Real time or in some cases 16 hours (different net banking facilities offered) HDFC to HDFC: 24 hours Axis to Axis: Real time Any other bank to our Bank Accounts: 24 hours

Debit Cards and Credit Cards (through Website):

The customers can use any Visa or Master Debit cards or Credit Cards issued in India. The customer has to come online and can pay through our website. Please refer the below mentioned link: http://www.dreamgains.com/index.php?payment/card The following steps will guide you to collect payment for all the three modes of payment possible through our website. 1. The customer has to come on this page first. Here the customer has to provide all required

information on this page and proceed further. 2. The next page Order Details page appears with the information already copied from the previous page. Here the customer has to give his or her card details and proceed further. 3. The next page is Bank 3D secure page. Here the customer has to provide the VBV password or MasterSecure code for debit cards and I pin for Credit Cards. If the customer does not have these passwords, he or she can create one on this page itself by providing some basic information as per Bank records.

Net Banking (through Website):

We have an option of net banking facility through our website. Here the step 1 of the previous process remains the same. However, the customer has to select Net Banking (Direct debit to bank Accounts) option in payment options field on Order Details page. Thereafter, he or she can choose from the list of Banks and proceed further. The next page will be 3D secure page of the bank where the customer has to enter user id and password as provided by the bank and complete the transaction.

IVRS/Phone pay:
Customers having Credit Card can make payments using IVR facility also. Here the customer has to have an IVR transaction password ready before initiating the payment process. This process is useful where the customer wants to use Credit card but does not have an I pin or internet. The processes to obtain IVR transaction password typically called One Time Password (OTP) for some of the banks are given in the below mentioned link: http://shopping.ebay.in/mobile/otp.html The detailed procedure to collect payment through IVRS is explained below Dial the customer number Put the customer call on hold by pressing Flash button on your phone Dial CC Avenue phone pay at 022 67890102 choose language (English or Hindi) Press merchant code 10105 Enter order id (this is any random 12 digits) Enter order amount It will ask you to connect the customer to the conference; pressFlash button again followed by 3. This means there are three people in the conference (IVR, you and the customer) Follow the instructions on IVR. The details can be entered by either you or the customer. The required details are mentioned in the following order: Press 1 for Visa or 2 for Amex (Master Card Credit Cards are not accepted) Enter the credit card number Enter expiry date in mmyy format (example: January 2015 is to be entered as 0115) Enter CVV number Enter OTP Enter customers mobile number registered with the bank. Wait for the confirmation on the call.

HNI- Level 1 1 Chapter

This chapter will brief you on the HNI product that DreamGains advises its customers on.

About the product 5 Sections This chapter will breif you on all details required to know about the product in order to effectively sell HNI package. Introduction: HNI stands for High Net worth individuals This product is beneficial for those customers that have an investment of more than Rs 5 lakhs Some of the features of this service are as below 20 hours of online support 20 hours of offline support Support only on one product i.e, Equity, Commodity, Index(Nifty) Delivery based suggestions Options based suggestions Special limited calls based on technical and fundamental analysis Individual trade consultants to handle all market related queries

Online and offline support: Here the customer will recive 20 hrs of offline and online support Offline support will be terms of portfolio buliding and portfolio analysis Here the customer can utilize 20 hrs of support from the research member in a month to build or analyse his portfolio Online support will be in terms of direct support on call with the research member for any market related query This could be in terms of the customers own position or those recommended by us Research support: The main advantage of this service is that the account mangers of the HNI customers will be a research member and will get direct one to one support from the research member The customer will be given the direct number of the research member and all market related queries will be solved quickly and effectively No SMS will be sent to customer. All communication with the customer will be over the phone with the research member

About the product: The customer will get 2-3 calls in a week to buy or sell The customer has to trade in a minimum of 2 lots in those calls if it is in futures The customer has to trade with a minimum investment of Rs 4 lakhs if the call is in equity The accuarcy of these calls will be 85-90% over the course of 1 month The main USP of this product is that limited calls will be given to the customer with a high accuracy The risk reward ratio in this service will in most cases be double of the normal products HNI refundable: The HNI package is a refundable service for those customer who opt for the same. The terms and conditions for the refund are as below HNI- Commodity You must trade on all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. It is mandatory that you have to book partial profit and full profit when we tell you to do so. It is mandatory for you to trade in minimum 2 lots in all our calls. If in the first 5 trading days you have not recovered your subscription fee, you can claim for a refund by writing a mail to support@dreamgains.com and research@dreamgains.com. You can claim for a refund after completion of the 5 trading sessions from the date that your service has started. No refunds will be processed in the first 5 trading days of the service. You will have a buffer of 1 day to claim for a refund. No refunds will be processed after the buffer time. HNI- Equity You must trade on all our calls. In case you do not trade on all our calls, we still consider the profit or loss of that particular call. You have to strictly follow our calls and have to enter and exit on the time and levels mentioned by us. It is mandatory that you have to book partial profit and full profit when we tell you to do so. It is mandatory for you to trade in minimum Rs.5 lakhs in all our calls. It is mandatory for you to trade in minimum 4 lots in all our calls. If in the first 5 trading days you have not recovered your subscription fee, you can claim for a refund by writing a mail to support@dreamgains.com and research@dreamgains.com. You can claim for a refund after completion of the 5 trading sessions from the date that your service has started. No refunds will be processed in the first 5 trading days of the service. You will have a buffer of 1 day to claim for a refund. No refunds will be processed after the buffer time.

Track sheet- Level 1 1 Chapter

This module will take you through the track sheet of DreamGains and how to interpret the same while talking to customers. Understanding the track sheet 6 Sections This chapter will explain the track sheet in detail. Introduction: The track sheet is the most important tool that the executive has while talking to the customer It details all the facts about the calls given for the day to the customers It is the single greatest USP for an executive to convince a customer to subscribe to DreamGains services The importance of using the track sheet as a USP is in understanding the track sheet and interpreting the same to best convince the customer The track sheet for the equity markets will be sent to the executives everyday via email in an excel sheet. This will be sent after market closing i.e. after 3:30 PM The track sheet for the MCX Commodity markets will be sent the next day in the morning since the MCX market opertates from 10:00 AM to 11:30 PM The track sheet for the NCDEX Agri markets will be sent everyday post 5PM since the NCDEX Agri markets close at 5PM Track sheet- Nifty futures:

DATE NIFTY FUTURE 27-Mar-12

TIME

PRODUCT

TRADE

LOT SIZE

RATE SL

TARGET 1TARGET 2TARGET

09:29:26 BANK NIFTYSELL 100 >10090 10130 10050 10010 AM Above is a sample of the track sheet for Nifty futures The first coloumn represents the date on which the call is sent to customers The second coloumn represents the time at which the call is sent to customers The third coloumn represents the product in which the call is sent. Since this is track sheet for the Nifty futures package, there are only 2 products namely Nifty futures and Bank Nifty futures The 4th coloumn represents the type of trade it is i.e. Buy or Sell The 5th coulmn represents the lot size. In the case of Bank Nifty futures we mwntion 4 lots(100 qty) and in the case of Nifty futures we mention 2 lots(100 qty). This lot size is taken for our claculation purpose and is not representation of the number of lots that the customer is actually

997

trading in. The 6th coloumn represents the rate above or below which we have told the custoer to initiate the order Coloumns 7 to 10 represent the Stop loss and targets that have been sent to the customers along with the calls. In the case of Nifty futures the stop loss will be 25 points and 3 targets of 25 points each. In the case of Bank Nifty futures, the stop loss will be of 40 points and 3 targets of 40 points each. Couloms 11 to 13 represent the price at which we have told the customer to book the profit or loss. Suppose 3 targets are achieved, then each booked column will have the target prices. Suppose the Stop loss of the call is triggered, only the Booked 1 coloumn will be filled with the Stop loss price Coloumn 14 represents the total profit/loss the customer has made per quantity of the instrument. This is calculated as the last booked price- the buy/sell price Coloumn 15 represents the total profit/loss the customer has made in rupee terms. This is calculated as the toltal points multiplied by the lot size The 16th coloumn represents the investment of the customer if he traded on the call. This is calculated as the Rate multiplied by the lot size. In the case of Nifty futures a margin of 10% is taken. Coloumn 17 represents the ROI(return on investment) of the customer if he had traded in the call. This is calcuated as the total profit divided by the total investment. The final coloumn represents the the remarks with regards to the call i.e. Stop loss triggered, Closed at cost, Target achieved, etc.

Track sheet- Stock cash:

DATE TIME

PRODUCT TRADE

LOT RATE SL SIZE

TARGET TARGET TARGET BOOKED BOOKED B 1 2 3 1 2 3

STOCK CASH 27-Mar- 9:18:40GODREJ BUY 404 >494.90 489.9 499.9 504.9 509.9 12 AMCONSUMER 27-Mar- 9:48:29 BHEL SELL 783 >255.60 258.2 253 250.4 247.8 253 12 AM 27-Mar- 10:23:20RELIANCE SELL 524 >381.30 385.2 377.4 373.5 369.6 12 AMCAP 27-Mar- 10:56:13 EDUCOMP BUY 1018 >196.40 198.4 200.4 202.4 196.4 12 AM Above is a sample of the track sheet for Stock cash The first coloumn represents the date on which the call is sent to customers The second coloumn represents the time at which the call is sent to customers The third coloumn represents the product in which the call is sent. Since this is track sheet for the Stock cash package, the company name is mentioned The 4th coloumn represents the type of trade it is i.e. Buy or Sell The 5th coulmn represents the lot size. In the case of stock an investment of Rs 2 lakhs is taken for caluclation purposes. This lot size is taken for our claculation purpose and is not

representation of the number of lots that the customer is actually trading in. The lot size is calcuated as Rs 2lakhs/Rate The 6th coloumn represents the rate above or below which we have told the custoer to initiate the order Coloumns 7 to 10 represent the Stop loss and targets that have been sent to the customers along with the calls. In the case of stock cash the stop loss and targets will be worth 1% each from the rate a twhcih we have told the customer to buy or sell. Couloms 11 to 13 represent the price at which we have told the customer to book the profit or loss. Suppose 3 targets are achieved, then each booked column will have the target prices. Suppose the Stop loss of the call is triggered, only the Booked 1 coloumn will be filled with the Stop loss price Coloumn 14 represents the total profit/loss the customer has made per quantity of the instrument. This is calculated as the last booked price- the buy/sell price Coloumn 15 represents the total profit/loss the customer has made in rupee terms. This is calculated as the total points multiplied by the lot size The 16th coloumn represents the investment of the customer if he traded on the call. This is calculated as the Rate multiplied by the lot size. Coloumn 17 represents the ROI(return on investment) of the customer if he had traded in the call. This is calcuated as the total profit divided by the total investment. The final coloumn represents the the remarks with regards to the call i.e. Stop loss triggered, Closed at cost, Target achieved, etc.

Track sheet- Stock futures:

DATE STOCK FUTURES 27-Mar-12 27-Mar-12

TIME

PRODUCT

TRADE

LOT RATE SL SIZE

TARGET TARGET 1 2

9:16:38 BATA INDIA BUY AM

500

<795

787 99

803 101 520.5

811 102 516.5

9:20:16IDEA BUY AMCELLULAR JINDAL 10:02:59 27-Mar-12 STEEL(MIN SELL AM 2 LOTS)

4000 >100

1000 >524.50 528.5

Above is a sample of the track sheet for Stock futures The first coloumn represents the date on which the call is sent to customers The second coloumn represents the time at which the call is sent to customers The third coloumn represents the product in which the call is sent. Since this is track sheet for the Stock futures package, the company name is mentioned The 4th coloumn represents the type of trade it is i.e. Buy or Sell The 5th coulmn represents the lot size. In the case of stock futures a single lot is taken unless mentioned otherwise in the call. This lot size is taken for our claculation purpose and is not representation of the number of lots that the customer is actually trading in. The 6th coloumn represents the rate above or below which we have told the custoer to initiate the order Coloumns 7 to 10 represent the Stop loss and targets that have been sent to the customers along with the calls. In the case of stock cash the stop loss and targets will be worth Rs 4000 each from the rate at which we have told the customer to buy or sell. Couloms 11 to 13 represent the price at which we have told the customer to book the profit or loss. Suppose 3 targets are achieved, then each booked column will have the target prices. Suppose the Stop loss of the call is triggered, only the Booked 1 coloumn will be filled with the Stop loss price Coloumn 14 represents the total profit/loss the customer has made per quantity of the instrument. This is calculated as the last booked price- the buy/sell price Coloumn 15 represents the total profit/loss the customer has made in rupee terms. This is calculated as the total points multiplied by the lot size The 16th coloumn represents the investment of the customer if he traded on the call. This is calculated as the Rate multiplied by the lot size. A margin of 10% is taken. Coloumn 17 represents the ROI(return on investment) of the customer if he had traded in the call. This is calcuated as the total profit divided by the total investment. The final coloumn represents the the remarks with regards to the call i.e. Stop loss triggered, Closed at cost, Target achieved, etc.

Track sheet- Options: DATE OPTIONS 27-Mar-12 9:41:39HDIL 90 BUY AM(MAR) PUT 2000 3.00 2.7 3.35 3.65 TIME PRODUCT TRADE LOT TARGET TARGET TARGET RATE SL SIZE 1 2 3

Above is a sample of the track sheet for Options The first coloumn represents the date on which the call is sent to customers The second coloumn represents the time at which the call is sent to customers The third coloumn represents the product in which the call is sent. Since this is track sheet for the Options package, the company name is mentioned if it is a stock option and Nifty options is mentioned if it is an Index option. The 4th coloumn represents the type of trade it is i.e. Buy or Sell The 5th coulmn represents the lot size. In the case of options a single lot is taken unless mentioned otherwise in the call. This lot size is taken for our claculation purpose and is not representation of the number of lots that the customer is actually trading in. The 6th coloumn represents the rate above or below which we have told the custoer to initiate the order Coloumns 7 to 10 represent the Stop loss and targets that have been sent to the customers along with the calls. In the case of optionsthe stop loss and targets will be worth 10% each from the rate at which we have told the customer to buy or sell. Couloms 11 to 13 represent the price at which we have told the customer to book the profit or loss. Suppose 3 targets are achieved, then each booked column will have the target prices. Suppose the Stop loss of the call is triggered, only the Booked 1 coloumn will be filled with the Stop loss price Coloumn 14 represents the total profit/loss the customer has made per quantity of the instrument. This is calculated as the last booked price- the buy/sell price Coloumn 15 represents the total profit/loss the customer has made in rupee terms. This is calculated as the total points multiplied by the lot size The 16th coloumn represents the investment of the customer if he traded on the call. This is calculated as the Rate multiplied by the lot size. Coloumn 17 represents the ROI(return on investment) of the customer if he had traded in the call. This is calcuated as the total profit divided by the total investment. The final coloumn represents the the remarks with regards to the call i.e. Stop loss triggered, Closed at cost, Target achieved, etc.

Track sheet- BTST/STBT:

DATE TIME PRODUCT BTST/S TBT

TRADE

LOT RATE SL SIZE

TARGET TARGET TARGET BOOKED 1 2 3 1

27-Mar- 3:00:51HINDUSTAN BUY 12 PMUNILEVER (BTST)

478

>418

410

426

434

442

ORCHID 27-Mar- 3:04:21 CHEMICAL BUY 1090 >183.40 179.4 187.4 191.4 195.4 12 PM (BTST) Above is a sample of the track sheet for BTST/STBT package The first coloumn represents the date on which the call is sent to customers The second coloumn represents the time at which the call is sent to customers The third coloumn represents the product in which the call is sent. Since this is track sheet for the BTST/STBT package, the company name is mentioned. The 4th coloumn represents the type of trade it is i.e. Buy or Sell The 5th coulmn represents the lot size. In the case of equity an investment of Rs 2lakhs is taken and 1 lot is taken if it is a stock futures call. This lot size is taken for our claculation purpose and is not representation of the number of lots that the customer is actually trading in. The 6th coloumn represents the rate above or below which we have told the custoer to initiate the order Coloumns 7 to 10 represent the Stop loss and targets that have been sent to the customers along with the calls. In the case of equity call 2% will be the stop loss and targets and if it is futures Rs 8000 will be risk reward ratio. Couloms 11 to 13 represent the price at which we have told the customer to book the profit or loss. Suppose 3 targets are achieved, then each booked column will have the target prices. Suppose the Stop loss of the call is triggered, only the Booked 1 coloumn will be filled with the Stop loss price Coloumn 14 represents the total profit/loss the customer has made per quantity of the instrument. This is calculated as the last booked price- the buy/sell price Coloumn 15 represents the total profit/loss the customer has made in rupee terms. This is calculated as the total points multiplied by the lot size The 16th coloumn represents the investment of the customer if he traded on the call. This is calculated as the Rate multiplied by the lot size. Coloumn 17 represents the ROI(return on investment) of the customer if he had traded in the call. This is calcuated as the total profit divided by the total investment. The final coloumn represents the the remarks with regards to the call i.e. Stop loss triggered, Closed at cost, Target achieved, etc.