Societe Generale launch their Daily Leverage Products

  • London Stock Exchange Market Open

Daily Leverage Products are designed to provide a simple, flexible and transparent way to enhance potential profits from the daily rise or fall of the FTSE 100 Total Return Index, without risking more than the initial investment.

Daily Long 5s (UKL5) are designed for rising markets, and will multiply any rise of the FTSE 100 TR by a factor of five. Daily Short 5s (UKS5) conversely will benefit as prices fall. This means that every 1 per cent rise or fall in the FTSE 100 TR from the previous day’s closing price can generate a 5 per cent move in the associated Daily Leverage Product. However, investors should note that a 1% fall in the FTSE 100 TR will create a 5% loss in value of a Daily Long 5 (UKL5), and vice versa for a Daily Short 5 (UKS5). To provide the leverage, Daily Leverage Products track a leveraged Underlying Index, which is independently calculated by FTSE.

“We are very happy to offer investors a simple way to enhance their daily returns. Now through the Daily Long 5 and Daily Short 5, investors can amplify the daily performance of the FTSE 100 TR in both rising, and falling markets without risking more than they invested”. Alexandre Houpert, Head of Public Distribution, Listed Products & Lyxor ETF France, UK, BeneLux & Scandinavia.