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Investors who currently hold exposure to $HSTECH 7xLongSG270331(YPCW.SI)$ should consider switching to the more sensitive, newly-listed $XRXW(XRXW.SI)$ or $HSTECH 7xLongSG271216(SYHW.SI)$

If you're trading the $HSTECH(HSTECH)$ DLCs, you may have noticed several 7x Long DLCs listed on the SGX and available to trade, like YPCW, WYHW, SYHW, and UMCW, or the newly-listed XRXW.

One of the key differences between the DLCs are their prices. So, does price matter, and which DLC price should you choose?

🔍 Why DLC Prices Differ

Even when tracking the same underlying with the same leverage, DLCs can have different prices because:

✅ 1. Different issuance prices

Issuers launch DLCs at different starting prices to cater to different investor preferences.

✅ 2. Re‑issuance due to extreme price moves

– If an older DLC becomes too expensive because of the price movement of the underlying, the issuer may list a new DLC at a lower price so entry isn’t too costly.

– If a DLC becomes too cheap and loses sensitivity (price barely moves), the issuer may re‑issue a new DLC at a higher price to provide investors with higher-sensitivity options, which offer investors a wider trading range.

Understanding DLC Sensitivity

Due to different minimum bid sizes for different price ranges imposed by SGX, DLC price differences lead to varying sensitivities. A DLC's sensitivity value refers to how much the underlying price needs to move for the DLC price to move by 1 minimum bid size. A lower sensitivity value means that the DLC price is actually more sensitive to underlying price movements.

In general, as DLC price increases, its sensitivity also increases (sensitivity value decreases). This means that the higher the price of a DLC, the smaller the required move in the underlying price needed to move the DLC by 1 minimum bid size. As such, higher-priced DLCs provides investors with a wider trading-range.   

In essence,

– Higher‑priced DLCs are generally more sensitive

→ Smaller moves in the underlying index can lead to larger absolute moves in the DLC.

– Lower‑priced DLCs tend to have lower sensitivity

→ It takes a larger move in the underlying for the price of the DLC to move by 1 tick.

Below is a graph illustrating how a DLC's sensitivity changes with its price. The example assumes DBS is at S$25 and the DLC is of 5x leverage.

Investors who currently hold exposure to $HSTECH 7xLongSG270331 (YPCW.SG)$ should consider switching to the more sensitive, newly-listed $HSTECH 7xLongSG280316 (XRXW.SG)$ or $HSTECH 7xLongSG271216 (SYHW.SG)$ . If you're trading the $Hang Seng TECH Index (800700.HK)$ DLCs, you may have noticed several 7x Long DLCs listed on the SGX and available to trade, like YPCW, WYHW, SYHW, and UMCW, or the newly-listed XRXW. One of the key...

Investors can check the latest sensitivity of DLCs here. To learn more about sensitivity, visit the FAQ page ("What is Sensitivity of a DLC?") on SG DLC website or call the DLC hotline to enquire further.

Investors who currently hold exposure to $HSTECH 7xLongSG270331 (YPCW.SG)$ should consider switching to the more sensitive, newly-listed $HSTECH 7xLongSG280316 (XRXW.SG)$ or $HSTECH 7xLongSG271216 (SYHW.SG)$ . If you're trading the $Hang Seng TECH Index (800700.HK)$ DLCs, you may have noticed several 7x Long DLCs listed on the SGX and available to trade, like YPCW, WYHW, SYHW, and UMCW, or the newly-listed XRXW. One of the key...

While lower‑priced “cheap” DLCs may appear attractive because they allow investors to purchase more units with the same capital outlay, their lower sensitivity means they require a much larger move in the underlying before registering a one‑tick change. In contrast, the same capital can be used to buy a higher‑priced, more sensitive DLC, providing a wider and more responsive trading range.

Take for example, the newly listed $XRXW(XRXW.SI)$ which is issued at S$1 with a sensitivity of ~3points move required on HSTECH index before the DLC can move one tick.

Investors who wish to initiate a 7x Long exposure to HSTECH should select XRXW orYPCW (sensitivity ~46 points) or WYHW (sensitivity ~31points).

However, it is still important to note that both high and low-priced DLCs have the same leverage factor and move by the same theoretical % compared to the Underlying Asset, whether it is 3, 5, or 7 times, Long, or Short.

Investors should choose the price point that suits their needs but should also take note that there are some disadvantages in trading low-priced DLCs.

See the full list of DLCs on dlc.socgen.com

This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only