While DLCs are exchange-traded products that allow investors to multiply their returns, Mr Li says the compounding effect is not always positive. In a sideways or volatile market without a concrete direction or trend, a DLC may provide returns that are less than the leverage factor.
PHOTO: SOCIETE GENERALE
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)...