Shares & Derivatives
A Derivative Tracking The Singapore Airlines (SIA) Shares Went To $0 Within Minutes
By Dr Wealth  •  May 8, 2020
There was a big hoo-ha regarding a Daily Leverage Certificate (DLC) that’s tracking Singapore Airlines (SIA) (SGX:C6L) shares as it has gone to $0. Our trainer, Robin Ho, wrote about this issue on his Facebook Group: SIA – How traders lost all their money in DLC through a bizarre price movement Singapore Airlines (SIA) shares went ex-rights on 6 May 2020 and there was some unusual and bizarre movement in its share price wiping out the total value of SIA Daily Leverage Certificate (DLC) 5 X Short, which has been suspended as the underlying price has appreciated more than 20% from their theoretical ex-rights price (TERP) of S$3.71. This means that losses are now in excess of 100% for this leverage product. The value of TERP was derived by Soc Gen, the market maker for DLC using a methodology which includes the rights share component based on the issuance of approx....
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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