HARVESTGROUPmarginaltradingSHO

RTSELLINGlongshortHGMARKETSBUY
TRADING MANUAL

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TRADING MANUAL
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HGMARKETS PVT LTD
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AUTHOR: USAMA LIAQUAT (SENIOR RESEARCH ANALYST)

HGMARKETSprofitsFUNDAMENTALA
NALYSISsupplyDEMANDTECHNICALA
NALYSISdmiADXsupportsRESISTANC
EAGRICULTUREpipsKIBORfuturesSBP
SECPpivotsBULLISHbearishRANGEBO
UNDcommoditesENERGYbullionMETA
LSpreciousmetalsCASHSETTLEMENTS
physicaldeliveryHEDGERSspeculators
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ARBITRAGERSspreadBIDOFFERticksx
 TRADING MANUAL
HGMARKETS PVT LTD

Table of Contents
1) INTRODUCTION TO FUTURES ................................................................................................................ 4
2) TYPES OF ORDERS ................................................................................................................................. 4
2.1) Market Order ..................................................................................................................................... 4
2.2) Pending Order .................................................................................................................................... 4
2.2.1) Buy Limit ..................................................................................................................................... 4
2.2.2) Buy Stop ...................................................................................................................................... 5
2.2.3) Sell Limit ...................................................................................................................................... 5
2.2.4) Sell Stop ...................................................................................................................................... 5
2.3) Take Profit .......................................................................................................................................... 6
2.4) Stop Loss ............................................................................................................................................ 6
3) HOW TO LOGIN TRADER’S ACCOUNT ................................................................................................... 7
4) FUTURES FUNDAMENTALS: HOW TO TRADE ....................................................................................... 8
4.1) INSTANT EXECUTION ......................................................................................................................... 8
4.1.1) Buy/Sell (Long/Short position) .................................................................................................... 8
4.2) PENDING ORDERS ............................................................................................................................ 10
4.2.1) Buy Limit ................................................................................................................................... 10
4.2.2) Sell Limit .................................................................................................................................... 10
4.2.3) Buy Stop .................................................................................................................................... 11
4.2.4) Sell Stop .................................................................................................................................... 11
4.3) STOP LOSS ........................................................................................................................................ 12
4.3.1) Stop Loss Strategy for Instant buy ............................................................................................ 12
4.3.2) Stop Loss Strategy for Instant Sell ............................................................................................ 13
4.3.3) Stop Loss Strategy for Buy Limit ............................................................................................... 13
4.3.4) Stop Loss Strategy for Sell Limit ................................................................................................ 14
4.3.5) Stop Loss Strategy for Buy Stop ................................................................................................ 14
4.3.6) Stop Loss Strategy for Sell Stop ................................................................................................ 15
4.4) TAKE PROFIT .................................................................................................................................... 16
4.4.1) Take Profit Strategy for Instant Buy.......................................................................................... 16

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4.4.2) Take Profit Strategy for Instant Sell .......................................................................................... 17

4.4.3) Take Profit Strategy for Buy Limit ............................................................................................. 17
4.4.4) Take Profit Strategy for Sell Limit ............................................................................................. 18
4.4.5) Take Profit Strategy for Buy Stop.............................................................................................. 18
4.4.6) Take Profit Strategy for Sell Stop .............................................................................................. 19

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 TRADING MANUAL
HGMARKETS PVT LTD

1) INTRODUCTION TO FUTURES
A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to
transact a set of financial instruments or physical commodities for future delivery at a particular price. If
you buy a futures contract, you are basically agreeing to buy something that a seller has not yet
produced for a set price. But participating in the futures market does not necessarily mean that you will
be responsible for receiving or delivering large inventories of physical commodities - remember, buyers
and sellers in the futures market primarily enter into futures contracts to hedge risk or speculate rather
than to exchange physical goods (which is the primary activity of the cash/spot market). That is why
futures are used as financial instruments by not only producers and consumers but also speculators.

2) TYPES OF ORDERS
Client terminal allows to prepare requests and request the broker for execution of trading operations.
Moreover, terminal allows to control and manage open positions. For these purposes, several types of
trading orders are used. Order is a client's instruction to brokerage company to perform a trade
operation. In the terminal, orders are divided into two main types: market and pending. Besides them
"Stop Loss" and "Take Profit" are available.

2.1) Market Order

Market order is an instruction given to a brokerage company to buy or sell a security. Execution of this
order results in the execution of a deal. The price of a deal depends on the execution mode, which
depends on the symbol type. Generally, a security is bought at the Ask price and sold at the Bid price.

2.2) Pending Order

Pending order is the client's instruction to a brokerage company to buy or sell a security at pre-defined
conditions in the future. The following types of pending orders are available:

2.2.1) Buy Limit — trade request to buy at the Ask price that is equal to or lower than that specified in
the order. The current price level is higher than the value in the order. Usually this order is placed in
anticipation of that the security price, having fallen to a certain level, will increase;

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2.2.2) Buy Stop — trade request to buy at the Ask price that is equal to or higher than that specified in
the order. The current price level is lower than the value in the order. Usually this order is placed in
anticipation of that the security price, having reached a certain level, will keep on increasing;

2.2.3) Sell Limit — trade request to sell at the Bid price that is equal to or higher than that specified in
the order. The current price level is lower than the value in the order. Usually this order is placed in
anticipation of that the security price, having increased to a certain level, will fall;

2.2.4) Sell Stop — trade request to sell at the Bid price that is equal to or lower than that specified in
the order. The current price level is higher than the value in the order. Usually this order is placed in
anticipation of that the security price, having reached a certain level, will keep on falling;

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2.3) Take Profit

Take Profit order is intended for gaining the profit when the security price has reached a certain level.
Execution of this order results in complete closing of the whole position. It is always connected to an
open position or a pending order. The order can be requested only together with a market or a pending
order. Terminal checks long positions with Bid price for meeting of this order provisions (the order is
always set above the current Bid price), and it does with Ask price for short positions (the order is always
set below the current Ask price).

2.4) Stop Loss

This order is used for minimizing of losses if the security price has started to move in an unprofitable
direction. If the security price reaches this level, the whole position will be closed automatically. Such
orders are always connected to an open position or a pending order. They can be requested only
together with a market or a pending order. Terminal checks long positions with Bid price for meeting of
this order provisions (the order is always set below the current Bid price), and it does with Ask price for
short positions (the order is always set above the current Ask price).

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3) HOW TO LOGIN TRADER’S ACCOUNT

Following are the steps to login trader’s account

 Rollover your cursor to ‘Log In’ tab in the extreme top right corner
 Click on Login
 Then click of Client Login
 Then click on ‘ NEXT Trading Terminal – Login Based’

Following window will upload, insert your Account ID and Password in the top right box to Login your
account.

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4) FUTURES FUNDAMENTALS: HOW TO TRADE

4.1) INSTANT EXECUTION

There are following types of instant execution.

4.1.1) Buy/Sell (Long/Short position)

To execute an instant long position (Long) please follows the following steps

 Click on ‘FastOrders’ button

 A new window will pop-up
 Following is the screen shot


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Contract Order Order Type GTC Trader Lots Price SL Limit Operation
Side (Trigger) Price/St
Distance op
This tab This tab This tab will GTC is the This bar Lots will This tab is Not If you want
will will give give you the abbreviation will show give the only applicabl to submit
provide the option to of ‘Good Till you your option to applicable e the trade
you the option to select the Cancelled’ it account select the to then click
detail of buy or type of order means your ID number pending on ‘submit’
all the sell you want to order will of orders button and
available select. For remain valid contracts if you want
products instant till you want to cancel
and their execution execution to buy or the order
contracts click on sell. For then click
with ‘Market’ and single on ‘clear’
different for pending contract button
maturities orders select write ‘1’
‘Limit’

To execute buy or sell follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select the ‘order side’. If you want to go long then select buy else select sell for short position.
 For instant execution click on ‘order type’ drop down menu and select market.
 Enter the number/ numeric value in the lot tab. For a single contract enter 1
 Click on submit button to execute trade.

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4.2) PENDING ORDERS

4.2.1) Buy Limit

To execute Buy Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Buy Limit

4.2.2) Sell Limit

To execute Sell Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want check to this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Sell Limit

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4.2.3) Buy Stop

To execute Buy Stop follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Buy Stop

4.2.4) Sell Stop

To execute Sell Stop follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Sell Stop

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4.3) STOP LOSS

Stop Loss strategy for instant execution

Order Side Stop Loss Strategy

Buy Sell Stop
Sell Buy Stop

Stop Loss strategy for Pending orders

Order Type Stop Loss Strategy

Buy Limit Sell Stop*
Sell Limit Buy Stop*
Buy Stop Sell Stop
Sell Stop Buy Stop

4.3.1) Stop Loss Strategy for Instant buy

To execute Stop Loss strategy for instant buy follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

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4.3.2) Stop Loss Strategy for Instant Sell

To execute Stop Loss strategy for instant buy follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

4.3.3) Stop Loss Strategy for Buy Limit

To execute Stop Loss strategies for Buy Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

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4.3.4) Stop Loss Strategy for Sell Limit

To execute Stop Loss strategies for Sell Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

4.3.5) Stop Loss Strategy for Buy Stop

NOTE: Stop Loss strategy for Buy Stop can only be executed after the execution of Buy Stop

To execute Stop Loss strategies for Buy Stop follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

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4.3.6) Stop Loss Strategy for Sell Stop

NOTE: Stop Loss strategy for Sell Stop can only be executed after the execution of Sell Stop

To execute Stop Loss strategies for Sell Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select ‘StopLossMarket’ from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Stop Loss

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4.4) TAKE PROFIT

Take Profit strategy for instant execution

Order Side Stop Loss Strategy

Buy Sell Limit
Sell Buy Limit

Take Profit strategy for Pending orders

Order Type Stop Loss Strategy

Buy Limit Sell Limit
Sell Limit Buy Limit
Buy Stop Sell Limit*
Sell Stop Buy Limit*

4.4.1) Take Profit Strategy for Instant Buy

To execute Take Profit strategy for instant Buy follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want check to this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

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4.4.2) Take Profit Strategy for Instant Sell

To execute Take Profit strategy for instant Sell follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

4.4.3) Take Profit Strategy for Buy Limit

*NOTE: Take Profit strategy for Buy Limit can only be executed after the execution of Buy Limit

To execute Take Profit strategies for Buy Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want check to this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

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4.4.4) Take Profit Strategy for Sell Limit

*NOTE: Take Profit strategy for Sell Limit can only be executed after the execution of Sell Limit

To execute Take Profit strategies for Sell Limit follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

4.4.5) Take Profit Strategy for Buy Stop

To execute Take Profit strategies for Buy Stop follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Sell from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want check to this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

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4.4.6) Take Profit Strategy for Sell Stop

To execute Take Profit strategies for Sell Stop follow the instruction mentioned below

 Click on drop down menu of ‘contract’ and select the contract you want to trade.
 Select Buy from ‘Order Side’ drop down menu
 Select Limit from ‘Order Type’ drop down menu
 Tick GTC if you want to check this option
 Set number of contract from the “Lot’ Tab
 Set the price limit in ‘Price(Trigger) Distance’ tab
 Click on submit to execute Take Profit

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