Are you ready to prove your trading skills and compete against the very best fund managers out there in the industry? Whether you’re a seasoned pro or just starting out, this is your chance to shine in the Active Trading Tournament 2024 which will be held from the 12 – 30 August 2024.
The tournament consists of 2 rounds:
1) Tournament Trading Round
2) Top 5 Finalists Pitch Round
The top 5 traders with highest portfolio returns in the tournament trading round will be invited to The Finale Pitch in Singapore on 14 September 2024 to do a live pitch on stage in front of panel of judges to win cash prizes.
A minimum of four trades for each participant is also required to be the top 5 traders.
This year, InvestingNote is partnering with UBS and Societe General for this Active Trading Tournament.
As with the other previous years, the tournament focuses on the trading of Daily Leverage Certificates (DLCs) which allows both short & long to obtain the maximum benefits gain for the participants.
For those who are not too familiar with how DLCs work, it is essentially an exchange-traded financial instrument that provides leveraged exposure to the performance of an underlying asset, such as an index, stock, or commodity, on a daily basis. These products are designed to amplify the daily returns of the underlying asset, either positively or negatively, depending on the direction of the leverage.
So regardless of whether you’re holding Long or Short views on the market, you’d be able to profit from taking the respective DLCs position in the market.
Here’s some of the important considerations when trading a DLC.
Leverage Mechanism:
DLCs offer a fixed leverage factor, typically ranging from 3x to 7x. For instance, if a DLC offers 5x leverage and the underlying asset increases by 3% in a day, the DLC’s value would increase by 15%. Conversely, if the underlying asset decreases by 3%, the DLC’s value would decrease by 15%.
Daily Reset:
The leverage is applied to the daily return of the underlying asset, meaning the DLC resets its leverage daily. This is a critical feature because it means the DLC’s performance over a period longer than one day may not directly correspond to the underlying asset’s performance multiplied by the leverage factor. This is due to the compounding effect.
Compounding Effect:
The compounding effect can lead to significant differences between the expected and actual returns over multiple days, especially in volatile markets. For example, in a volatile market, the compounding effect might cause the DLC to underperform or overperform compared to what a simple multiplication of the asset’s performance by the leverage factor would suggest.
This tournament is FREE for all to join, so why not pit your chance to win a few dollars and who knows you might just come out on top.
Click here to join the competition and register asap!
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