DLCs offer you exposure to a fixed leverage of 3 to 7 times the daily performance of the underlying index.

Daily Leveraged Certificates or DLCs are a form of structured financial instruments issued by banks and traded on the securities market. DLCs offer investors a fixed leverage of 3 to 7 times of the daily performance of the underlying index, be it a rising or falling market.
The basic principle is simple – if the FTSE Straits Times Index (STI) moves by 1% from its closing price of the previous trading day, the value of the 3x STI DLC will move by 3%. DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying benchmarks and need to be actively monitored on a daily basis.
DLCs have a finite lifespan and cease to exist on expiry date. At the expiry the final exercised value of the DLC is calculated and automatically paid to investors.
This product allows investors to gain fixed leveraged exposure to developed Asian market indices. This comes without the features impacting pricing for options such as implied volatility, time decay or margin calls.
Features
- Leverage up to 7 times – DLCs offer a fixed leverage of 3 to 7 times of the daily performance of an underlying index. This means your gains could potentially be amplified – however your losses will also be enlarged.
- Go Long or Short – DLCs offer the flexibility to trade both rising and falling markets over short periods of time, predominantly on an intra-day basis.
- Risk Management – Low capital outlay and loss limited to invested amount.
- Pricing Structure – No margins. No implied volatility impact. No time decay impact.
- Transparency – Transparent pricing due to tradability of the products on exchange. Trades with a designated market maker providing liquidity.
Product Information Page
- SGX DLC information page: sgx.com/dlc
- SG DLC information page: dlc.socgen.com
For more information
- Contact your Trading Representative at DBS Vickers Securities; or
- Call our Customer Service Line at (65) 6327 2288 (SG).