Daily Leverage Certificates (DLCs) 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 (you may refer the full lists of DLCs here). On each trading day, the DLCs would replicate the performance of the underlying asset versus its previous day closing level with a fixed leverage factor of up to 7x.
In case you have not realized, DLC is essentially a leverage product, designed for short term trading, which will allow investors to build and magnify the exposure of their positions in key Asian indices and individual stocks such as DBS, Tencent, BYD, etc. There are both Daily Long and Daily Short DLCs which allow investors to trade both directions of the market.
However, unlike most leverage products out there in the market, the one thing that stands out for DLCs is that they are listed on the cash market of SGX and tradable on any regular stock brokerage platform , and because of that, there is no risk of a margin call. This could suit the appetite of some investors who would like to build or hedge their positions with the assurance that their maximum loss is limited to their invested amount even if the performance of the underlying stock or index moves sharply against them.
In addition to that, there is also very little capital outlay needed to take on a position as compared to the minimum lot requirement to purchase directly especially for HK stocks. Lower capital outlay also means less commission and exchange fees.
Let me illustrate that with an example.
Assume as an investor you already have positions in Tencent Holdings that you would like to hold for long term.
The current market is volatile and sentiments are not exactly high, and with earnings announcement coming up, you think this might drive down the share price further.
Aside from simply just selling your entire positions in the open market, you can actually buy a Daily Short Tencent 5xShortSG231214 (DMIW) which will allow you to hedge your positions using a small amount of capital with the 5x leverage.
Assuming Tencent reported a poor earnings and share price is down by 4.5%, this would allow you to profit by approximately ~ 4.5% x 5 = 23% through the DLC that you purchased. This would help to offset or partially offset the risks and losses for the overall positions that you are holding long term for Tencent Holdings.
Tencent 5xShortSG231214 (DMIW) DLC simulation
Say for example you think the earnings would instead beat estimates and would like to increase your exposure in the short term. You can buy the Daily Long – Tencent 5xLongSG220808 (DDLW) using a smaller amount of capital rather than buy the Tencent stock to gain that extra exposure (bear in mind the minimum investment amount for Tencent stock in HKD is ~S$7,500 due to lot size). Furthermore, all DLCs are priced in SGD hence you do not have to go through the inconvenience of changing your SGD to HKD.
You can use DLCs to complement your trading strategies and work them to your favor and there is no better opportunity than to implement them in the next upcoming simulation event.
SG Active Trading Tournament 2021
The SG Active Trading Tournament 2021 is back again this year as one of the most anticipated trading tournament that is organized jointly by Investing Note and Societe Generale, as well as SGX that allows traders to participate in the trading of DLCs.
This year is particularly exciting and one which I have a lot of anticipation to myself because the market has been very volatile which add flavors to the competition itself.
The entire tournament period runs for about 1.5 months from the 13th September 2021 to the 22nd October 2021. The details of the schedule are further appended into:
- Elimination Round: 13th September 2021 – 1st October 2021
- Final Round: 11th October 2021 – 22nd October 2021
I actually considered myself faring in the last 3 simulation tournaments that I attended – scoring the top 50 ranking for the year in 2018 and 2020. Do bear in mind that for every events, we have close to 2000 participants fighting for the top price and some of these people are veterans and professional traders so I didn’t actually fare too badly!
- 2018 – Rank number 2 + $100 daily winner voucher
- 2019 – Rank number 246 + $100 daily winner voucher
- 2020 – Rank number 28 + $100 daily winner voucher
2018 SG Active Trading Tournament 
2019 SG Active Trading Tournament 
2020 SG Active Trading Tournament
So do join the tournament this year by clicking here. Registration is free and there are various prizes to be won and I’ll see you at the podium!
Disclaimer: This post is written in partnership with InvestingNote – SG’s first and largest community for investors.
uncle168,
2 weeks after opening covid cases have surged to 98 as predicted by uncle168.
oyk and pap will pay dearly for forcing singaporean to take an experimental vaccine with their lives as the deadly b1617 spread rapidly via dorms schools workplace.
we will lockdown in mid sep because the vaccine is useless amd have many long term side effects.
unlinked cases are rising and many elderly will die because of oyk and pap.
no vac no jobs right?
divine retribution will befall this greedy gov that exchange the lives of its people for money.
tuck you oyk
keekeekee
uncle168,
i can”t believe fda approved this vaccine.
https://www.fda.gov/news-events/press-announcements/fda-approves-first-covid-19-vaccine
“Additionally, the FDA conducted a rigorous evaluation of the post-authorization safety surveillance data pertaining to myocarditis and pericarditis following administration of the Pfizer-BioNTech COVID-19 Vaccine and has determined that the data demonstrate increased risks, particularly within the seven days following the second dose. The observed risk is higher among males under 40 years of age compared to females and older males. The observed risk is highest in males 12 through 17 years of age. Available data from short-term follow-up suggest that most individuals have had resolution of symptoms. However, some individuals required intensive care support. Information is not yet available about potential long-term health outcomes. The Comirnaty Prescribing Information includes a warning about these risks.”
how can the benefits outweigh the risk?
oyk you are lucky you didn’t die from 2 shots.
do you dare to take a third shot after reading fda approval warning?
you can die from heart failure from taking this vaccine and the long term side effect is unknown and would probably be related to heart problem years down the road.
why are you forcing people to take such a dangerous vaccine?
you not afraid of divine retribution?
keekeekee
uncle168,
no tourist will dare to come when ypu have hundreds of daily cases.
today unlinked cases have doubled.
the exponential increase in cases have returned in full force 2 weeks since reopening of dine in on 10 aug.
what has brought cases down was the lockdown which ended on 10 aug and not the vaccine.
the vaccine is useless and is helping covid to spread rapidly as the gov is not testing the vaccinated.
it is like letting people with guns roam free while picking on unvaccinated people who are keeping it safe by not dining out.
karma has strike singapore with floods and manhole explosion, more to come as lky weep for the unvaccinated whom has done no wrong.
many people will die because of oyk.
only complete isolation can spread out the death rate and focus on domestic consumption can save singapore.
dreaming of opening up will only lead us in circles and very angry voters.
vaccination discrimination is pointless as even if we reach 100% the death rate and icu will still rise exponentially if the gov insist on opening but nobody will dare to come.
what’s the point?
its like an idiot with aids inviting people to come to his house.
who will come?
keekeekee
uncle168,
soon the sg gov will follow israel and ask pro-vax to get booster every 3 months or their vax status will drop to non-vax.
all the vaxinated fools will be speechless.
knn vax until die?
i predict a ban on dine-in and wfh as default by 15 sept as daily cases surge to 1K and 174 serious cases & 44 icu making the 4g leaders look like fools.
today total case likely 200+, 30 0xy, 13 icu.
keekeekee
uncle168,
many things could happen next week:
reinfection mega cluster at dorm
the gov didn’t solve the crowded dorm problem so we did it b4 we do it again, the expo is preparing to welcome back all the infected migrant workers of the 10s of thousands like last year.
lockdown no dine in wfh
as hospital become full no choice we did it b4 we do it again, a lockdown to bring down cases would happen soon as shopping malls schools workplace dorm start huge clusters islandwide.
2 dose is good, 3 dose is better
fda likely to approve 3rd dose next week. we did it b4 we do it again, the mass media would push the narrative that more jabs regularly would prevent serious cases.
in dec the gov would forget everything when the cases drop again.
the focus will be pe2022 which tcb would become the next president leading the psp to form the next gov in ge2025. wp has lost its way when the leader took pap money and forget who voted them in.
but the pap will never learn especially the old dragon. oyk would say we did it b4 we do it again, lets open up and cases would surge again leading us in circles.
keekeekee
uncle168,
it is likely bhg bugis still use punch card machine to record attendance for promoters which makes up most of the staff.
so 1 infected take his card loaded with mucus virus punch already, the virus inside the machine ink pad and on top of the machine, then another one punch his card touch the ink on the card, top of the machine and the card holder on the wall, dig his nose.
close down all the shopping malls lah and convert them into pig farms or warehouse.
keekeekee
uncle168,
i would resign if my boss ask me to get vaccinated.
i would rather earn less money than die from the vaccine long term side effects which is most likely linked to brain and heart damage.
my life is more important than money.
i have no way of knowing whether i’m allergic until i’ve taken the vaccine, this logic enable the gov to force everyone to take the vaccine as nobody can prove they are allergic to the vaccine before taking it.
if i die the gov would say its because of everything else except the vaccine.
even the vaccine manufactuers says there is evidence that blood clots and icu is possible yet fda approve this useless and dangerous vaccine.
the gov and trade union have lost its way.
it is blindly following western countries with surging imfection and death rate by opening up and forcing vaccination when china and new zealand should be the role model to minimise death rate.
this gov will pay the price by losing power and high vaccinated death rate by mid sep.
i would rather die of covid if my immune system fails me than to take such a dangerous vaccine.
i do not mind suffering and gain natural immunity against covid, shoukd i die from covid i will not blame the gov as i have chosen not to take the vaccine.
i have never seen singapore so divided since independence.
initially it was immigration that divided us then it lead to the class war now its the vaccination status divide.
its ironic that if the gov thinks vaccination is working why then do the vaccinated still need to wear mask and keep safe distancing? why can’t the vaccinated travel abroad freely? why do the vaccinated need a booster shot?
the amswer is simple, the vaccine is useless and paints a false narrative we will recover from this pandemic when the reality is covid will only end when the virus kill everyone on earth because they is no cure like hiv.
why don’t the gov make the vaccine mandatory and ask the vaccine manufactuer bare full liabilities for vaccine injuries and death?
it is because the gov knows many have died after taking the vaccine.
when the cure is worst than the disease, fear of covid blinds the gov rationaliy.
the minister of health is not a doctor but a fighter pilot in the rsaf, he is more interested in hitting his kpi and bonus target than saving lives.
80% vaccinated bonus still not enough?
you want 100% is it? you want birth defect like agent orange in vietnam by vaccinating children ignoring the possibility of long term side effects?
you know when you get strike by lightning you can’t spend your bonus in hell.
the umvaccinated is not wrong to fear the long term side effects of the experimental vaccine which the manufacturer has yet to proof there is no long term side effects.
we have followed all the covid rules why is the gov forcing us to take the vaccine?
has the gov got mad?
divine retribution will befall these greedy people.
may lightning strike oyk the mastermind of all these evil rules to boost his kpi and bonus.
money over lives.
god speed
keekeekee