Leveraged and inverse products
Leveraged and inverse products (L&I Products) are derivative products traded on the stock exchange. L&I Products are structured as funds, but unlike conventional funds, they are designed for short term trading or hedging, which are not intended for holding longer than one day.
Leveraged products aim to deliver a daily return equivalent to a multiple of the underlying index return subject to a maximum leverage factor of two times (2x). Inverse products aim to deliver a daily return equivalent to a multiple of the inverse underlying index return subject to a maximum leverage factor of two times (-2x). The inverse product goes down when the underlying index moves upwards, and the inverse product goes up when the underlying index moves downwards.
L&I Products are not intended to be held for longer than one day as their return over a longer period may deviate from and may be uncorrelated to the multiple of the returns of the underlying index over a period of time.
Due to the complexities of L&I Products, it is important to understand fully how they work and the risks involved before making your investment decision. Learn more about the basics of L&I Products in the sections below.
Learn more about L&I Products
You can refer to these advanced sections if you are interested to learn more in depth about L&I Products, such as "daily rebalancing" and long-term holding risk.
You should assess whether L&I Products are suitable for you in light of your investment objectives, the amount of investment required, investment horizon and your risk appetite. Should you have any questions about L&I Products, please consult your intermediaries before making any investment decisions.