If you’ve been trading Leveraged & Inverse (L&I) ETFs, chances are you already enjoy the thrill of magnifying your market moves—that sense of timing, analysis, and strategy coming together when the markets turn in your favour.
But what if you could take that same trading experience and apply it to a wider range of global names, all while choosing the leverage that best suits your trading appetite?
Enter SGX Daily Leverage Certificates (DLCs)—a product that feels familiar, yet opens up new ways to trade. Whether you’re a tactical trader eyeing short bursts of volatility or prefer something steadier, DLCs let you pick your pace. You can opt for 3x leverage for measured exposure, or go up to 7x for higher intraday movements.
In short: same thrill, different gears.
Trading DLCs feels familiar, but provides more flexibility
For those who’ve traded L&I ETFs, SGX DLCs will feel instantly recognisable. Both offer leveraged exposure to popular market names, letting you express bullish or bearish views with amplified results.
The difference? Flexibility.
L&I ETFs typically offer a fixed 2x or 3x leverage. SGX DLCs, on the other hand, come in multiple leverage factors (3x, 5x, or 7x), so you can pick what aligns with your trading strategy.
Beyond indices, SGX DLCs cover a broader selection of single stocks, including big names from the US and Hong Kong markets. That means you can act on your views of companies like Tesla, Nvidia, or Alibaba, right from your regular brokerage account during Asian trading hours.
For L&I traders, that’s a game-changer. No more late-night trades just to catch the US open. You can now make your moves in sync with your own schedule.
Transparent and easy to understand
If you’ve ever traded leveraged products, you’ll know that sometimes, the biggest challenge isn’t market movement—it’s figuring out the costs.
SGX DLCs take the guesswork out of that equation. Their fee structure is clearly disclosed, so you know exactly what you’re paying. There are no layered or hidden fees to decode, and everything from cost to mechanics is transparent on the issuer’s website.
That clarity matters, especially for retail investors comparing different leveraged instruments. When you can easily see how your product works, it becomes easier to trade confidently and focus on what really matters: timing and execution.
Access global markets with convenience
If you’ve ever stayed up late waiting for the US markets to open, you’ll know it’s not exactly sustainable.
With SGX DLCs, you can now trade US underlyings during Asian hours, right alongside local and Hong Kong underlying names. Imagine being able to respond to Tesla’s latest news before breakfast, or catch Nvidia’s moves while you’re having lunch—all without switching platforms or watching a different timezone clock.
It’s global exposure, local convenience. By trading through SGX, you get to access international opportunities while keeping your capital and routine in the same time zone.
Understanding the daily reset and compounding effects
Here’s where it’s important to pause and understand what makes DLCs tick.
Each SGX DLC comes with a daily reset mechanism. This means its returns are recalculated based on the underlying asset’s performance for that trading day only. Over time, this daily reset can lead to what’s known as the compounding effect, especially in volatile markets.
This means DLCs are best suited for short-term tactical trading, where you can actively monitor and adjust your positions. They aren’t designed for long-term holding, as compounding can cause performance to diverge from the underlying asset if held for extended periods.
So, if you’re a trader who likes quick, decisive market plays and thrives on precision timing, DLCs could fit nicely into your toolkit.
Why SGX DLCs are the next step for traders
For experienced traders who already use L&I ETFs, SGX DLCs represent a logical evolution. They don’t replace your L&I tools—they expand your options.
Here’s a table showing the similarities between both options:
Infographic Table: U.S. Underlying L&I ETFs vs SGX DLCs
With a variety of leverage levels, no margin requirements, and transparent costs, SGX DLCs give you the ability to tailor your strategy to your own risk appetite. Want more volatility? Go higher. Prefer tighter control? Stick to 3x.
Most importantly, they bring the world’s biggest markets within reach, all in Asian trading hours.
Whether you’re exploring short-term opportunities or fine-tuning your strategy across regions, SGX DLCs give you the tools to trade on your own terms.
Eager to start? Learn more about DLCs at SGX DLC, or visit SocGen and UBS for more resources before you dive in.
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The information provided in this article is for general information and educational purposes only and does not constitute financial advice. Readers should seek advice from a licensed financial adviser before making any investment or insurance decisions.
This post was written in collaboration with SGX. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence.
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