How to Trade in the X-Factor Trading Tournament [Tutorial]
The X-Factor Trading Tournament is finally happening on Monday, 5th May 2025!
Pre-registration is now open. REGISTER NOW: InvestingNote.com – X-Factor Trading Tournament & Leaderboard
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).
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 5 May, 9AM sharp, go to our website: www.investingnote.com and login with the username or account type that you registered for the tournament with.
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.
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.
Do take note of the following:
- Only market order is permitted. No limit order or queuing for trade orders.
- Orders are only allowed during periods where the Designated Market Maker, Societe Generale, is providing a market on the DLCs. The regular trading hours on trading days are listed below:
Singapore DLCs (both index and single stocks): 9am to 12pm; 1pm to 5pm.
US DLCs (both index and single stocks): 9:00am to 12pm; 1pm to 5pm
Hong Kong index DLCs: 9:15am to 12pm; 1pm to 4.30pm
Hong Kong stock DLCs: 9:30am to 12pm; 1pm to 4pm - If you would like to short a DLC, do buy a short DLC, instead of clicking the “sell” button.
Full details of the tournament are here: Terms & Conditions: X-Factor Trading Tournament – InvestingNote’s Signal Blog
May the best traders win, and we wish you good luck!
We’d see you at the top!
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