Daily Leverage Certificates

Daily Leverage Certificates (DLCs) are complex, high-risk financial products which give investors a leveraged return based on the daily performance of an underlying reference index (e.g. Straits Times Index). The leverage amplifies the movement of the reference index, thus giving you outsized returns – and losses. DLCs may be either "long" or "short", and allow you to bet on both the rises and falls of the index.

Be familiar with the features of DLCs before trading, such as the Daily Reset feature, Airbag feature, and impact of compounding. All investors need to be Specified Investment Products (SIP) qualified to invest in DLCs.

DLCs are meant for short term trades, particularly those to be settled within one day. They may not be suitable as long-term investments.

Please refer to http://www.sgx.com/wps/portal/sgxweb/home/products/securities/daily-leverage-certificates/education-and-resources for more detailed information on DLCs.

This article was produced in collaboration with the Singapore Exchange.

What are DLCs?

Who are DLCs suitable for?

What will my returns be from DLCs?

How do I buy or sell a DLC?

What are the costs and fees?

What are the risks and what is the maximum investment amount I can lose?

When will a DLC be delisted?