Frequently Asked Questions
Under SGX, you may use the sector filter “Daily Leverage Certificates” to search the available DLCs on POEMS.
Daily Leverage Certificates (DLCs) are for investors who are willing to accept the risk of substantial losses up to the principal investment amount, possibly within a very short timeframe. Investors should also have sufficient understanding of the product and should possess either a high level of knowledge or sufficient trading experience to properly evaluate and assess the product structure, associated risks, valuation, costs and expected returns. All investors need to be Specified Investment Products (SIP) qualified to invest in DLCs. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying benchmarks.
Investors need to complete a Customer Account Review (CAR). For more information regarding CAR, you may visit our FAQ page here or contact your trading representative to find out more.
Alternatively, investors may assess their qualifications to trade SIPs or enhance their product understanding through the SGX online education program.
Similar to shares, investors may buy and sell DLCs on the SGX securities market through POEMS. DLCs are also settled on the same basis as share transactions, which is on the second business day after the trade date, or T+2.
DLCs have a limited life with a maximum tenure of 3 years. At expiry the final exercised value of the DLC is calculated and automatically paid to investors.
DLCs can complement a portfolio by offering enhanced returns over a shorter time frame. You can take advantage of daily market news or when expecting economic events. Provided that the markets go the right way for you, these amplified returns can be an effective way to boost the overall return of your portfolio.
Lets use the counter Tencent for example. DIHW – Tencent 5xLongSG231214
|SG||Issuer (SG = Societe Generale)|
|231214||Expiry Date (YYMMDD)|
Both are Long DLC contracts of Tencent however you might notice that the difference is the issuer which is this is listed as UB (UBS) as well as a different expiry date.