With the concerns of a 2^nd wave of virus outbreak, the Asia indices staged a major selldown on 11 June 2020. Singapore’s STI Index plummeted 3.5% in a single day and Hong Kong’s Hang Seng Index also gapped down 2.0% on the same day. In times like this, some investors are thinking of shorting the market to make money on the way down. This is also equivalent to hedging and protecting their portfolios during this huge market swings. There are predominantly 3 ways to take advantage of a market downturn (through shorting) in Singapore:

1. Naked Short Selling (you borrow to short sell)
2. Contracts For Differences (CFDs)
3. Daily Leverage Certificates (DLCs)

Naked short selling is cumbersome when traders have to disclose their short sell orders to the exchange. Furthermore, there will be huge penalties if you are unable to cover the short selling on a T+2 settlement date. As for CFDs, they are not traded...