All cursors, static and animated, use the concept of a hot spot. The location that lies underneath the hot spot pixel in a cursor is passed to applications as the cursor is moved and as mouse buttons are pressed and released. If undefined, Windows will assume a hot spot in the upper-left pixel of the cursor (0,0).
Click on the Hot Spot tool button. The current hot spot of the image will blink momentarily.
Click the left mouse button on any pixel in the image to move the hot spot to a new location.