---
title: "Singapore Market Daily Leverage Certificates (DLCs)"
description: "This article introduces Daily Leverage Certificates (DLCs), a type of high-leverage financial derivative, covering their fundamental characteristics, naming rules, and investor suitability requirements. It aims to help you understand the operational mechanisms and risk characteristics of this complex product.1. DLCs IntroductionDaily Leverage Certificates (DLCs) offer investors fixed leverage up to 7 times of the dai"
slug: "DLCs"
locale: "en"
region: "sg"
region_label: "Singapore"
url: "https://longbridge.com/sg/en/support/topics/sgmarket/DLCs.md"
updated_at: "2025-12-01T06:40:25.000Z"
category: "sgmarket"
category_title: "SG market"
references:
  related:
    - title: "SGX Trading Rules—Securities Market"
      url: "https://longbridge.com/sg/en/support/topics/sgmarket/SGXTRADINGRULE.md"
    - title: "What are the types of orders? - SG"
      url: "https://longbridge.com/sg/en/support/topics/sgmarket/SGordertypes.md"
    - title: "Fractional share trading FAQs - SG"
      url: "https://longbridge.com/sg/en/support/topics/sgmarket/Oldlottradesfaq.md"
---

# Singapore Market Daily Leverage Certificates (DLCs)

[Table of Contents](https://longbridge.com/sg/en/support/toc.md)

This article introduces Daily Leverage Certificates (DLCs), a type of high-leverage financial derivative, covering their fundamental characteristics, naming rules, and investor suitability requirements. It aims to help you understand the operational mechanisms and risk characteristics of this complex product.

#### 1\. DLCs Introduction

Daily Leverage Certificates (DLCs) offer investors fixed leverage up to 7 times of the daily performance of the underlying asset (e.g. market indices or single stocks). Comprehending the principle is relatively easy – if the underlying asset moves by 1% from its closing price of the previous trading day, the value of a 3x DLC will move by 3%, and that of a 7x DLC will move by 7%.

#### 2\. DLC Naming Convention

![](https://pub.pbkrs.com/uploads/2025/b65d757aafe6dc10ea410b158a8b414c)

#### 3\. Investor Suitability

Daily Leverage Certificates (DLC) are only suitable for investors willing to assume the potential of losing their entire investment principal within a short period of time. 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.

DLCs seek to achieve short-term investment results that correspond to the daily magnified performance of the underlying asset. DLCS are products with features that might be more complex in nature and are only suitable for investors who possess the investment knowledge of more complex products and have a high risk tolerance. Hence, all investors need to be qualified to trade in Specified Investment Products (“SIP”) to be able to trade DLCs. 

For more information on SIP, visit sgx.com/sip.

Investors are advised to read the listing documents for the relevant DLC before making any investment decision.

**Key takeaways:**

-   **Product nature:** The DLC is a derivative that offers investors fixed leverage up to 7 times the daily performance of the underlying asset.
-   **Mechanism**: If the underlying asset moves 1% daily, the value of a DLC will change by a multiple of that movement.
-   **Naming rules**: DLC names include core elements such as the underlying asset, leverage multiplier, and expiration date.
-   **Investor suitability**:
    -   You must qualify for trading Specified Investment Products (SIPs).
    -   You should possess investment knowledge of complex products and a high risk tolerance.

**Disclosures**

*This article is for reference only and does not constitute any investment advice.*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).