Betting on the market's daily ups and downs

Daily Leverage Certificates (DLCs) are leverage trading products for investing or for hedging portfolios

Angela Tan

Published Thu, Apr 2, 2020 · 09:50 PM

Singapore

WIDER uncertainty in capital markets, a result of Covid-19, has brought to the fore some investment tools that local traders are using to bet on intraday or short-term moves.

One such tool is the Daily Leverage Certificate (DLC), a Specified Investment Product (SIP) available here for qualified retail investors. Investors can trade SIPs if they meet certain educational or professional specifications, or if they have experience trading in similar financial products.

French bank Societe Generale (SG) was the first to launch the popular European product in Asia on the Singapore Exchange (SGX) in 2017, and it remains the only issuer in the region.

DLCs are exchange-traded products that allow investors to multiply their returns by betting on the daily rise and fall of the underlying asset. These assets can be an …