 Hello and welcome to the Small Exchange. We have such a fun program for you here today. It's a dope way to trade cannabis. Oh my gosh, we're going to have a ball here talking about futures indexes, pot stocks, cannabis indexes, futures on cannabis indexes, how to access them, how to invest in a cheap way, how to trade all of these stocks with an efficient use of capital, and how to get long or short intraday and day trade everything without having to worry about pattern day trading rules or anything else. But first, I do want to introduce myself. I'm Frank Caberna from the Small Exchange here in Chicago. It's 8 a.m. It's actually a nice morning here today. It's been near zero for the last couple of weeks. The sun is out. It's about 35, 40 degrees Fahrenheit, which is basically summertime almost here. Anyways, here at the Small Exchange, we create futures products, which are essentially just ways to buy and sell an index. The most popular futures product out there is probably the S&P 500 future, which is just the 500 stocks of the S&P there. And the futures allow you to buy and sell that index or that basket of 500 stocks for a lot less capital than having to put up all those fragments of shares of each of those stocks. And so futures were created, like I say, as a cost effective way to buy and sell things. Here in 2022, the Small Exchange is working to not only bring innovative products like cannabis, a bunch of crypto products that we have, our interest rates, though that's an old asset class, have a really innovative spin on them. They trade in yield as opposed to bond prices. Not only are we trying to bring in that innovation to the field, but also those futures S&P 500 or otherwise, in interest rates, in foreign exchange, were created for large institutions and have large sizes. And so what the Small Exchange said was, hey, there's a lot of people in the last decade or so who are opening their own brokerage accounts, trading more than one or two times a year just to buy a couple of stocks or invest. People are trading options and CFDs and all these different derivative tools. Why don't we give them futures markets that are smaller, that are simpler, easier to digest, easier to add to their portfolio and also standardize them so all the ticks and everything trade just like shares of stock and everything else. And so that's why we're here in 2022, is to kind of revolutionize that derivatives field of futures for the everyday trader. And what we're going to talk about here today is specifically our cannabis futures, which we launched last year about and have been a really nice, clean product for people to not only trade pot stocks back and forth intraday or day to day, but also as a great investment tool as well. So I'm super happy to be here with everybody from tick mill. It's a great relationship we have with our friends over at tick mill, supplying them with the small exchange products for all their customers to trade. And so with that, I'll get into a little background about this product, how you can access it. And then we'll also have some fun on the back and with a nice freebie that jointly between the small exchange and tick mill has helped to sponsor for all of you out there, which will get you reduced fees and exclusive content for life here. So make sure you hang around for that, but we'll try to get through some pretty interesting notes here on the front end of the segment concerning getting in on growth potential here from the small exchange and tick mill, a really fun, interesting new way to trade and invest in this very new, volatile asset class here. I guess I should sector of an asset class being cannabis. Before we get into that volatility and how you can access and everything else, I do want to read you a disclaimer here so that I don't get in trouble with my compliance or tick mills as well. Small exchange is a designated contract market registered with the CFTC here in the US. Information in this should be considered general information, not in any case as a recommendation or advice concerning investment decisions. If you were itself is responsible for the risk associated with an investment decision based on the information stated in this material, the information in this advertisement is current as of the date noted is for informational purposes only and does not contend to address the financial objectives, situation or specific needs of the individual investor. Further, the information presented here is for illustrative purposes only and is not intended to serve as tax or investment advice. Since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances, results will vary and so on and so forth. Other information about the small exchange, what ETFs are, what futures are, and everything else. It is important to talk about risk concerning not only potstocks that we're talking about today because they are volatile, but also futures. Just because futures, those traditional big products used to pose a really big risk and thankfully the small exchange, smaller products, smaller notional sizes, you get the same leverage as those traditional futures, which is to say, I can buy $1,000 worth of market X and only put up $50 or $100 to do so and it's only $500 or $1,000 product with those traditional products like I talk about S&Ps and everything else. Those are like, I think the S&P 500 futures now are over $200,000 and that's just craziness. Risk is very important when talking about options, futures, CFDs, derivatives, everything, but it is nice to note right off the bat that the small exchange is trying to bring you smaller products. You get the same cost effectiveness, but smaller risks, smaller products there you can scale up and down how you see fit. Now let's get into potstocks, everybody. That's what you're here for and some of the largest potstocks have been cut in half more than cut in half in the last year or so of trading. It's better rough go for potstocks. Let's all face it here, but this does present a really unique opportunity and one that I've definitely personally, my own accounts jumped on as I do find my, though I don't like labels necessarily, I do find myself in the more contrarian field when something is really beat up. When stocks are really beat up or an asset class like a couple of years ago, silver was really down scraping the bottoms of historically low prices. That's when I like to pick things up. I know it may seem like a little bit of a stretch because the cannabis equity sector, this new stock sector that's really sprouted up the last five to 10 years here is very different than say the energy sector of ExxonMobil and all of those stocks, but I can't help but draw a comparison between the fact that energy stocks in 2017, 2018 and until like the last two or three years, they were the worst performing sector. A lot of those stocks performing between the 2010s to just the last couple of years, like I say, looked like charts like this, some of them down 50%, 60% and so on. This past year or so, energy has been one of the best performing sectors. Of course, there's a chance that an equity sector, you see this fall down 50% or 60% or even some of these cases, you see CGC there in the green line, 80% and they just kind of trickle on down to zero in that sector, maybe just gets kind of phased out. I don't see it and actually as I commit those words to this recording, that doesn't happen very often, happens almost never to an entire equity sector here. It does happen sometimes to single stocks that they kind of dribble down to those lows until they either get bought out or go bankrupt, but as a full sector like cannabis is, it's at its lows here, but I think presents a really decent value, especially as a contrarian play going against the trend, picking up some stocks that have not performed well over the last couple of years because not everything can perform like Tesla and Microsoft and Apple and everything else. And what's also really nice about just the year prior to this most recent year of action is that pot stocks have shown you that they have the ability to more than double in price. And some of them you see there till right more than triple in price or quadruple at some points. And so this, from my perspective, I am much more, I of course have investments all over the place, but I am much more an expert on price action and day-to-day day trading or also swing trading and everything else. And this is a real healthy sign of a market when it can show both sides. It's shown that it can move up hundreds of percentage points. It's shown that it can be cut in half there. That makes me feel better about committing a mean reversion player like I alluded to earlier, contrarian plays. And this is where the Small Cannabis Index comes in. It combines not only those three stocks that I highlighted for today's example, but more than a dozen other stocks diversifies your exposure so that you don't get caught holding the one or two of these stocks that maybe does go down to zero, does go bankrupt or does have a small buyout near its lows. You get diversified action. And we'll see here in a second that buying this index with futures does cost less than stocks or ETFs when you're talking about margin or buying power or whatever you want to call it here. And now that I've combined not only these stocks here, but also 2021 and 2022 or 2020 data, the last two years of movement, you can see that this is a pretty healthy two-sided market. Now, of course, S420, the Small Cannabis Index and all the stocks that fall within it can continue down towards zero and just sit at zero there. I haven't seen a stock go negative yet. And so we're thinking that this stock index also can't go negative. But as a high probability trader, as a mean reversion trader, I look at this chart and I see the fact that, yes, it's been as high as almost $20. Yes, it's been as low as where it sits now, $7 or $6. But it's spent a lot of time in between there. I at least can feel confident in a mean reversion play of it getting back to $10, $11, $12 somewhere in the middle. But also if I do want to buy pot stocks, get a handle on this new innovative equity sector for the long haul, I'm getting some of the best prices that you've historically seen in here. Nobody wants to buy those highs that you see in January 2021, especially if you see the fall after that in February in March of 2021. I know it doesn't seem like a super sexy, attractive play. Everybody online is talking about how, oh, these pot stocks, how are they going to make money off of this? And there's actually bigger competitors than they thought. There's not as much demand and everything else. When they're writing all those articles and markets like this are on their lows, that's usually one of the best times to get in. I think it's the old adage that the best time to be fearful is when everyone's greedy and when the best time to be greedy is when everyone is fearful. And so, like I say, does that mean that this market can continue lower? Of course it can continue lower, but I do like investing in something when it is near the lows here and everybody is writing about the death of that market or it's a pig or it's going to zero or what have you a little bit more about this S420 index. Here are all the names in the index. You've got ACB, AR, and A, which actually, I think is actually just going through a buyout here. And so that will be taken out of the index here and replaced with something else soon after the fact. C-A-R-A, C-G-C, C-R-B-P, Cron, C-R-O-N, G-R-W-G, HEXO, M-O, O-G-I, PM, C-S-M-G, and on down the line there you see till raisin there and some of the other popular names XXII. And they all have relatively equal weightings as well. You can see nothing topping out more than 8 percentage points of that index. We feel this is really essential, especially for volatile asset class like this that can see some of its underlying markets rise hundreds of percentage points or fall 80 percentage points, diversifying exposure across these different names and giving them pretty equal weighting means that I don't have to pick the right one here. If the right one is Tillray or the right one is C-G-C or Cron or whatever, I have a good chunk of exposure in that. And as we've seen with the technology sector, energy sector and so on, any sector there, rising tides tend to lift all boats. It'd be a rare occurrence that the index is unchanged, but half of the stocks are up 20% and the other half are down 20% here. So nice diversified, pretty equal exposure across all of them. And now a little bit about the futures that you trade on that index. If you're new to futures or this derivative space, it's about as simple as it gets in terms of derivatives. There's call and put options out there which have Greeks and Delta, Gamma, all these different things going on. In futures, it may sound scary here, but it's relatively straightforward. If you think this index is going to move higher, you would buy the futures on the index. If you think that it's going to move lower, you would sell the futures on the index. And we tried to make those futures look and feel as standard as possible, just like 100 shares of stock here. You can see the minimum tick size is 0.01 and that equates to one U.S. dollar here. The margin, I want to hang on for a second because you see that size, right now it's about a $7 market, which like 100 shares of stock, that's $700 worth of exposure. And you look down at that initial margin, which is going to be your cost to access it from the long or the short side, that's only $150. So I'm getting 700 bucks worth of those different pot stocks that I just showed you there for just $150, which is really, really nice. And just one buy order here gets me those 21 different strains of pot stock for that reduced cost. So really a win-win when you're talking about effectiveness of your capital, which isn't to say I always bring this up. If you have $1,000 and you buy one of the S420 contracts versus buying $700 worth of pot stocks, you don't then say to yourself, oh, I've got an extra $550 on my hand. I'm just going to buy more and more of these S420s. No, that's bad leverage. That's when you get into greater risk problems. But what's really nice when it comes to buying any sector, and we've got technology sectors, we've got a bigger, broader stock market, we've got crude oil, all these different markets accessing them with the futures here on an index that's diversified, great for diversification. But if I have $1,000 or whatever account size, I now get $700 worth of these pot stocks for $150. That $550 there, the rest of my account can go to buying technology stocks or selling gold or doing whatever you want there in a different, further diversified asset class as well. It's always good to have more of your account there sitting in cash. Of course, you want your account to be churning and doing different things. But the fact that I have to put up less money to get that investment really leaves the door open for me doing other things in other asset classes. Now, how the heck do I get these things? Well, Tickmill provides all of the small exchange products on its CQG and MT4 platforms. You can get more info at tickmill.co.uk slash futures hyphen and hyphen options, hyphen pricing. I'm sure you can find it if you just run a search engine query for Tickmill futures and options. But I've laid out here in front of you the 10 futures products from the small exchange. You see we've got small technology, small stocks, small US dollar, 10-year yields, crude oil, cannabis, cryptocurrency, two-year and 30-year yields, and precious metals. First of all, the all-in cost is extremely low. This is really, really out of any brokerage and exchange as low as it gets. Our fee on our side is, I believe, 15 cents here. I know that Tickmill's commission charges extremely competitive and low down there with any brokerage firm out there. Also, then you go over to the column there where you look at the initial margins, and that's what's charged you to access these different products. I can run down a couple of them here. The top line, small technology, that's a $60 product, so that's $6,000 worth of technology stocks, everything from Apple to Tesla and everything else. You only have to put up less than $500 to trade it. That's really nice when you're talking about either day trading or just investing. With the cannabis example here today or small technology or any of these markets, if you buy and hold and you see an appreciation of two to five percent, let's just for equivalency, say, call it five percent in a given month, that return on your capital is going to be enhanced almost tenfold across all of these different products because you're using less capital to do so. Like I say though earlier, that doesn't mean, oh, I only have to put up 10% to buy this thing. I'm going to buy 10 of them now when I was going to buy one, but just really nice to see efficient use of capital. You can see, you go down the line, none of these products for the most part are getting more than $1,000 in initial margin. Some of them, even small US dollar, less than 200 bucks to access that futures market. There aren't any futures out there that have as small margins as this. You get down there to the small two-year short-term yields moving around like crazy recently. You can access short-term interest rates with that S2I product, 140 bucks to try something out here, letting you know one, it's not going to cost that much to access. I don't want to make it seem like I've got millions of bucks, but most people can part with $100, $200 to try out trading something. But two, margin is a great barometer of risk in a product. Knowing that I'm buying or selling a market that costs $100, $200, $300 in margin, lets me feel a little bit more comfortable that margin is telling me the lifetime of this futures. My P&L, my account is likely only to fluctuate by that couple of hundred dollars. Really nice place to get started in futures in general with the small exchange products. Of course, TickMill presenting extremely competitive all-in costs there when you look at that. I just want to highlight a couple more of these products quite quickly. Crude oil, metals there has gold, silver, and platinum in one market, US dollar market there, which is US dollar against Euro, Chinese or maybe British pound, Australian dollar, Canadian dollar, diversified US dollar there, and that one only costs you a couple hundred bucks to trade small technology. That's a bunch of technology stocks in there, moves back and forth with the NASDAQ a lot. And then the 10-year yield, a lot of those interest rates not only here in the US, but abroad really starting to move as markets are projecting hikes from the different central banks across the globe. So definitely take a look at that. The smalls, our mission is to make futures, make all markets really more accessible to more people, lower costs, smaller products, and just more straightforward access. So many people having to deal with the interest rate asset class with German debt prices, the boomed and everything else, Italian debt prices, the BTP, and that and the yield here, it's an interest rates. It's exactly if interest rates are at 1% and you think they're going to 2%, you buy that product. So we also try to simplify things for you as well. The last thing I want to bring up here before I run out and let you all get on with your days and nights and whatever you're doing is the lifetime membership here to the small exchange. And this is $100 one-time payment. You get 50% off your exchange transaction fees for life, you get reduced market data fee costs for life, and you get exclusive data sent to your email on all the products and how they relate to other products as well. And that is actually free for you here today because of the TickMill sponsorship, our relationship with TickMill. If you go to that URL at bottom, and maybe we can post it somewhere or send it out, and an email or something to you all and others, if you go to community.thesmallexchange.com, slash sponsor, slash TickMill hyphen sponsored hyphen 20210324 there. I'll leave it up for a little bit. You can pick up, you can claim your sponsored membership here to our exchange. It's an interesting little thing. Futures exchanges and stock exchanges of the last 100 years or so have let members into their exchange. And those are usually institutions, big trading firms, banks, and otherwise. And we said, let's make a small membership here for our small traders out there. And they get the reduced fees that those big exchange members would get. And they get the reduced data costs and they get more information on the markets and everything else. But let's do it just for the everyday trader out there. And you can see some of the numbers that we spit out to everybody's standard deviations, projections, and how they relate to realized volatilities, and so much fun stuff in here. We've got features every week on how markets act and how you can access different things like crude oil we've been talking about recently, and also the stock market and how risky it is to short it. And then you have pairs trades, spread trades, correlations, and so much fun stuff here. And I'll let this sit for just another second, community.thesmallexchange.com, slash sponsor, slash tick mill hyphen sponsored hyphen 20210324. And I'm pretty sure you can go there, claim your membership and be a part of the small exchange for life, get those reduced fees, and hopefully try out not only the cannabis futures, but everything else and get into a different bit of a trading space. But that's all I have for you here today. I really appreciate everybody jumping on and watching. And I appreciate everybody from tick mill setting this up, you know, we're a small startup futures exchange here on the west side of Chicago in the US. And we've had just a real fun first year or so of growth, and we're excited to include more and more people as we continue to grow and add products and everything else. So thank you so much for joining us. And if you have any questions or so on, I'm sure we can get you in contact with me or someone support here at the small exchange. And that has been your introduction to the small cannabis futures and the small exchange, everybody. Thanks so much for joining here and have a great day.