With the economic fallout of the Covid-19 pandemic continuing to rile financial markets, daily leverage certificates (DLCs) are proving to be a useful tool to hedge investment portfolios and capturing short-term market trends.
The Singapore Exchange (SGX) has seen high activity levels around DLCs over the last month, as turnover levels tripled from a year ago. SGX has also reported a 50% increase in the number of active participants. In the March month-to-date, the three most traded Index DLCs were the 7x Short HSI DLC, 5x Short SiMSCI DLC, 7x Short SiMSCI DLC. DLCs are a particular useful tool in current market conditions due to their flexibility to trade both in rising and falling markets, and the fact that they
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