Daily Leverage Certificates (DLC) are exchange-traded financial products that enable investors to take a leveraged exposure to an underlying asset, such as a blue chip stock or an equity index.
DLCs replicate the performance of an underlying asset versus its previous day closing level, with a fixed leverage factor.
There are new DLCs with 20 regional blue chip stocks ranging from DBS to Tencent, as the underlying asset! Check out the full list of DLCs here.
For investors who want to maximise their short term exposure to market movements, DLCs can provide the opportunity to increase the exposure by a fixed factor, up to 5 times.
For DLCs with blue chip stocks as the underlying, the returns are magnified by 5x! For indexes, you can select a leverage from 3x, 5x or 7x!
Also, it doesn’t matter if the market is bearish as well – you can buy a short DLC to capitalise on a bearish situation.
For the 5x DLC with Venture as the underlying asset, it actually yielded a return of more than 70% in a week, just back in February!
The following is a detailed infographic by SGX on the Top 5 characteristics of DLCs.
If you’ve missed our previous post where we posted a quick video on how DLC works, watch it here.
For more educational materials on DLC, use this link: https://dlc.socgen.com/en/education/handbook
Now that you’ve understood what DLCs are, see the full list of DLCs that can be traded here.
Last but not least, if you’ve never traded a DLC and would like to know how, see if you qualify by taking the Specified Investment Product (SIP) test here.
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