LEVERAGED PRODUCTS

Daily Leverage Certificates

 

A form of structured financial instrument issued by banks and traded on the securities market.

Offer investors fixed leverage ranging from 3 to 7 times the daily performance of the underlying index.

Airbag mechanism
If the amount of loss is reached or exceeded by the underlying index, DLCs will be re-set, and subsequent performances will be based on the new observed level.

Limits the investor from losing more than his initial capital.

Tracks the daily performance of the underlying indexes, the day’s closing price will be tomorrow’s opening price. This allows one to compound their gains on a daily basis.

Designed to fulfil short-term trading, primarily on an intra-day basis, while also having a maximum tenure of 3 years.

Why trade this product with CGS-CIMB?

Available offerings for Daily Leverage Certificates

The Singapore Exchange (SGX) offers DLCs that are listed in Singapore and follows the performance of MSCI Singapore. They are

 
Name Underlying Name
DLC SG5xLongMSG200714 MSCI Singapore Free Index
DLC SG5xShortMSG200714 MSCI Singapore Free Index
DLC SG7xLongMSG210114 MSCI Singapore Free Index
DLC SG7xShortMSG210114 MSCI Singapore Free Index

The Singapore Exchange (SGX) also offers DLCs that track underlying in other markets such as the performance of Hong Kong Indexes, namely the Hang Seng Index and Hang Seng China Enterprises Index.

 
Name Underlying Name
DLC SG3xLongHSI200714 Hang Seng Index
DLC SG3xShortHSI200714 Hang Seng Index
DLC SG5xLongHSI200714 Hang Seng Index
DLC SG5xShortHSI200714 Hang Seng Index
DLC SG3xLongHSC200714 Hang Seng China Enterprises Index
DLC SG3xShortHSC200714 Hang Seng China Enterprises Index
DLC SG5xLongHSC200714 Hang Seng China Enterprises Index
DLC SG5xShortHSC200714 Hang Seng China Enterprises Index
DLC SG7xLongHSI210114 Hang Seng Index
DLC SG7xShortHSI210114 Hang Seng Index
DLC SG7xLongHSC210114 Hang Seng China Enterprises Index
DLC SG7xShortHSC210114 Hang Seng China Enterprises Index

Supported platform

CGS-CIMB iTrade

Equipped with an intuitive and interactive platform, offering users a different look as well as the necessary tools an investor would need for trading.
  Learn More

CGS-CIMB iTrade Mobile

A suite of mobile solutions on the go, available on any smartphone or tablet devices (iOS and Android devices). With features such as order placing, monitoring of stocks’ performances, viewing of investment portfolios and accessing real-time price and stock-related information on regional and global markets.
  Learn More

CGS-CIMB iTradePro

The platform comprises a comprehensive suite of innovative trading features, as well as advanced technical and analysis charts. It is specially created to meet the needs of sophisticated traders.
  Learn More

FAQs

Yes, but as the daily performance of the DLC is marked to the previous day’s closing price (yesterday’s closing price is today’s opening price), the product is more suitable for within the day or short-term trading.

There is no minimum margin required.

It requires low capital outlay and loss is limited to the invested amount. There is no implied volatility, time delay or margin calls. For novice investors, it is a good trading option to start out.

Open an account now

Simply contact CGS-CIMB Securities to request for an account opening pack.

1800 6227272 / (65) 62108453

clientservices.sg@cgs-cimb.com

Download our registration form and mail it to the desired branch with all the enclosures.

  Show all Singapore branches

Key Risks

The key risks associated with DLC include the following. It is important to note that the list of risks is not exhaustive.
Similar  to  Shares,  the  value  of  DLCs  are  exposed  to  the  fluctuation  of  the  Securities  market. 
DLCs  have  fixed  leveraged  feature  which  can  magnify  gains.  However,  it  will  also  magnify  losses  during  adverse  market  conditions.
DLCs are issued by an issuer and may be guaranteed by a guarantor. Any failure to either party to perform their obligations could result in the loss of all or part of the investment. 
DLC is designed such that it tracks daily performance of the underlying asset. What that means is that if you buy and hold a DLC beyond one day, your returns may significantly deviate from the 3x or 5x that the DLC is supposed to generate. That’s because the DLC is designed to be traded on an intraday basis, and holding it beyond one day will see a compounding effect coming into play. 

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