Daily Leverage Certificates (DLCs) in Singapore

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SGX Securities
DLC singapore blue chip stocks

What are DLCs?

Daily Leverage Certificates (DLCs) are a type of financial product that offers investors leveraged exposure to the daily performance of an underlying asset, which can be an index or stock.
They come with predefined leverage factors, typically 3x, 5x, and 7x, with 7x being the maximum. This means that investors’ returns are amplified by the respective multiplier.


DLCs reset daily, meaning the leverage applies only for that day’s performance. As such, DLCs are best suited for short-term trading, predominantly intra-day trading.

Why Invest in DLCs

Understand the benefits of investing in DLCs

7X Leverage

7X Leverage

Fixed leverage of up to 7 times both long and short.

Pricing Structure

Pricing Structure

No margins. No implied volatility impact1. No time decay impact2

Transparency

Transparency

Transparent pricing due to tradability of the products on exchange.

Long or Short

Long or Short

DLCs offer the flexibility to trade both rising and falling markets.

Risk Management

Risk Management

Low capital outlay and loss limited to invested amount.

Airbag

Airbag

Slows the investor’s rate of loss in extreme market conditions when triggered.

1 Implied volatility is the market’s expectation of the fluctuation in the price of the underlying asset over the remaining lifespan of the product. The higher the implied volatility, the wider the expected price fluctuation of the underlying asset. This in turn means there is a higher probability for the option or warrant to trade deeper in-the-money and the investor making a higher profit. Options or warrants with a high implied volatility will therefore be priced higher.


2 Time decay is the change in an option’s or a warrant’s price as it gets closer to the option’s or the warrant’s expiry date. The option or warrant value (chance of getting “in-the-money”) declines over time (i.e. as it gets nearer to the expiry date).

Latest Insights on DLCs in Singapore

Guides on DLCs in Singapore

Useful Resources

Top Resources for SGX DLC Investors.

Daily Leverage Certificates (DLCs) on the SGX

Gain leveraged exposure to U.S. stocks – trade 3x long or short positions on popular names via Daily Leverage Certificates (DLCs) on SGX.

View DLCs on SGX