Introduction to Daily Leverage Certificates (DLC)


Daily Leverage Certificates (DLC) are exchange-traded financial products that enable investors to take a leveraged exposure to an Underlying Asset, such as an index or a single stock.

Daily Leverage Certificates replicate the percentage performance of an Underlying Asset versus its prev...

How do Daily Leverage Certificates work?


There are two types of Daily Leverage Certificates - Daily Long and Daily Short which enable investors to take a long or short exposure to an Underlying Asset.

For bullish investors who think that an Underlying Asset is set to rise in the short term they can trade Daily Longs. Dail...

How do you trade Daily Leverage Certificates?


Daily Leverage Certificates are listed on the Singapore Stock Exchange (SGX) and can be bought and sold via brokers just like shares at any time during market hours. A Designated Market Maker (DMM) will contribute live tradable prices and intra-day liquidity.

When you trade DLCs in...

What is Compounded Return?


Gains and losses are compounded over periods of more than one trading day, and as such will deviate from the leveraged performance of the underlying asset.

This difference may be amplified in a volatile market with a sideways trend, where market movements are not clear in direction that...

What is Air Bag Mechanism?


The Air Bag Mechanism is a safety mechanism that is built into the Daily Leverage Certificates. It is designed to reduce the negative impact of an extreme move in the Underlying Asset during the day if the direction of the Underlying Asset is against investors. In more volatile markets, the ...

How to calculate profit and loss from trading DLCs?


DLCs can potentially deliver an amplified performance compared to the underlying asset. The percentage change in the underlying asset can be amplified by 3x, 5x and 7x. This works both ways for profit and loss. DLCs are a type of leveraged product. It is a product that can get you ampli...

What is Intrinsic Close?


Intrinsic Close is the value computed using the valuation formula of the Certificates stated on the relevant Supplemental Listing Documents at market close. It is the closing value of a DLC published by SG, which SG calculates for reference purpose only based on the valuation formula of the produ...

Is DLC only for day trading? How do investors utilise DLCs?


Some investors utilise DLCs for day trading, where they may enter the market in the morning and exit in the afternoon, or buy and sell DLCs within hours. Although DLC is a short term trading product, it is not restricted to day trade only. SG generally does not recommend investors to hold DLCs fo...

What is sensitivity?


Sensitivity shows the amount underlying index or stock needed in order to trigger one tick movement of the DLC price. DLC returns are on percentage. No matter how much the unit price of a DLC is, what actually affects investors’ return is the amount of money put in to buy the DLC instead of...

DLC vs other leveraged products


DLC is listed on the exchange, where CFD is traded over the counter. Every investor gets the same price for DLC, while you get different prices from different providers for CFD. 

DLCs (and structured warrants) are not traded on margin, which makes DLC not subject to a margin call. ...