Singapore’s biggest trading tournament is finally happening on Monday, 14 October 2019!
With more than 1,500 participants, participants will battle it out with other traders, through the trading of an instrument called Daily Leverage Certificate (DLC).
This tournament consists of 2 rounds:
- Elimination Round (from 14 Oct 2019 – 8 Nov 2019): A free-for-all trading simulation that includes all participants. Top 10 traders based on highest total portfolio returns will be selected. A minimum of four trades for each participant is also required to be the top 10 traders.
- Final Round (from 18 Nov 2019 – 29 Nov 2019): Top 10 traders will compete against each other. The top 3 traders with highest portfolio returns will win a prize. A minimum of four trades for each participant is also required to be the top 3 traders.
- Voting Period (from 18 Nov 2019 – 29 Nov 2019): The 10 traders into the final round will garner for votes from the public during this period. The trader with the highest number of votes will win the “People’s Choice Award”.
What is a Daily Leverage Certificate (DLC)?
Daily Leverage Certificates (DLC) are exchange-traded financial products that enable investors to take a leveraged exposure to an Underlying Asset, such as an equity index or a single stock (Full list of DLCs). Daily Leverage Certificates replicate the performance of an Underlying Asset versus its previous day closing level, with a fixed leverage factor.
There are two types of Daily Leverage Certificates – Daily Long and Daily Short which enable investors to take a long or short exposure to an Underlying Asset.
Getting Started: what can you do with a DLC?
Long DLCs allow you to generate leveraged gains when the Underlying Asset goes up. On the other hand, Short DLCs increase in value when the Underlying Asset goes down, allowing investors to achieve positive and leveraged gains during market downturn.
Example: 5x Long DBS
5x Long DBS is at S$2. Buy 500 shares of this DLC with S$1000 when DBS is at S$25.
DBS goes up from S$25 to S$25.5, i.e. up 2%.
5x Long DBS will go up from S$2 to S$2.2, i.e. up by 2% x 5 = 10% compared to the previous day close.
Example: 5x Short Tencent
5x Short Tencent is at S$1. Buy 1,000 shares of this DLC with S$1,000 when Tencent is at HK$300.
Tencent goes up from HK$300 to HK$309, i.e. up by 3%.
5x Short DLC will go down from S$1 to $0.85, i.e. down by 3% x 5 = 15% compared to the previous day close.
How to identify a DLC?
For example, a 5x DLC with DBS as an underlying would be known as DLC SG5xLong DBS, with the following ticker DOXW.
Read this for more details on how DLC works.
[Tutorial] How to start trading and being on the leaderboard for this tournament:
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