How to Trade In The SG Active Trading Tournament 2021 [Tutorial]

How to Trade In The SG Active Trading Tournament 2021 [Tutorial]

The Biggest & Most Anticipated Trading Tournament is finally happening on Monday, 13th September 2021!

Pre-registration is now open. REGISTER NOW: http://bit.ly/SGATT2021

With more than 2,000 participants last year, this year 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 13 Sep 2021 – 1 Oct 2021): 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 11 Oct 2021 – 22 Oct 2021): 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.
  • Join the tournament here: http://bit.ly/SGATT2021

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 Tencent as an underlying would be known as 5xLongSG211105, with the following ticker DANW.

If there are more than one DLC with the same terms, DLCs that are launched subsequently are supplemented with an ‘A’, ‘B’, ‘C’ and so forth after expiry date.

What happens if I hold a DLC until expiry?

If you hold a DLC until expiry, the DLC will be settled at the fair value based on the pricing formula. If a 5x DLC is worth S$2 one day before expiry, and if the Underlying Stock remains unchanged on the expiry date, then the settlement price of the DLC will be at S$2.

Read this for more details on how DLC works.

[Tutorial] How to start trading and being on the leaderboard for this tournament:

Step 1: As the tournament begins on 13 September, 9AM sharp, go to our website: www.investingnote.com and login with the username or account type that you registered for the tournament with.

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Step 2: Click the “Simulation” button at the top right to access the competition, or use this link:

Step 3: Click the “View My Simulation” button to access your virtual portfolio

Step 4: View your virtual portfolio’s dashboard, and click the “buy” button at the top or the “trade” button on the right to start trading

Step 5: Place an order by keying in the desired DLC and the amount.

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Step 6: Let your profits roll and make other trades by repeating step 2!

Step 7: Closing your trade: simply go to your summary positions and click the “x” icons.

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Do take note of the following:

  1. Only market order is permitted. No limit order or queuing for trade orders.
  2. DLC on HK-listed underlying stocks and indexes follow HK market open timing, while DLC on SGX-listed underlying stocks and indexes follow SG market open timing.
  3. If you would like to short a DLC, do buy a short DLC, instead of clicking the “sell” button.

Essential Tournament Details You Need To Know:

  1. The tournament will be held on the InvestingNote platform (web version only) which tracks the real-time price movements on the Singapore Exchange, based on virtual money.
  2. You are now given $100,000 virtual money to trade per round. Every trade will have virtual transaction fees.
  3. There will be daily prizes of $60 CapitaLand vouchers for winners with the biggest realised profit (absolute positive return) for any single DLC instrument on the particular trading day during the elimination round. Check out the daily leaderboard here: http://bit.ly/SGATT2021
  4. Tune in to Active Traders’ Club to get daily updates, trading ideas and strategies: https://www.investingnote.com/groups/42
  5. Full details of the tournament are here: http://blog.investingnote.com/singapore-active-trading-tournament-2021-rules-terms-conditions-sgatt-2021/ 

May the best traders win and we wish you good luck!

We’d see you at the top!



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