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Deutsche Börse expands indices for leveraged investments in Dax


Deutsche Börse has expanded its offering in the area of Dax-plus strategy indices with two new ShortDax indices and a new LevDax index.

Deutsche Börse has expanded its offering in the area of Dax-plus strategy indices with two new ShortDax indices and a new LevDax index.

LevDax and ShortDax give investors the option of leveraged investment in the Dax index when prices rise or fall. In addition to the LevDas and ShortDax Deutsche Börse is also introducing further, more highly leveraged variations.

The new LevDax x4 allows investors to profit from four times the daily performance of the DAX index. The existing LevDax is linked to the movements of the Dax benchmark index with a leverage factor of two. Under the expansion of the index family, the LevDax will therefore be given the name LevDax x2. Any movement on the Dax results in double the movement on the LevDax x2 and four times the movement on the LevDax x4, in the case of both rising and falling prices.

Deutsche Börse has launched two new indices for investments in falling prices to enhance the ShortDax: ShortDax x2 and ShortDax x4. ShortDax x2 means double the negative daily performance of the Dax; ShortDax x4 has a leverage effect of four times the negative daily performance of the Dax.

The performance of the ShortDaxis directly opposed to that of the Dax index: if the DAX rises by five per cent, the ShortDax falls by five per cent, and vice versa. The ShortDax gives investors who expect negative performance on the Dax index or are looking for a short-term, efficient hedge against falling prices access to a useful strategic index product.

All leveraged indices have a protective mechanism in order to prevent a total loss. If an index loses more than 50 per cent at a certain time on any one day, the leverage effect will be adjusted ad-hoc and the calculation continued based on the last Dax level prior to the defined point in time.

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