A Guide to Trading Daily Leverage Certificates (DLC)

What is Daily Leveraged Certificates

- A leveraged product that offers investors 3, 5 or 7 times the daily performance of the underlying asset, whether it is a rising or falling market

- e.g if the underlying moves 1% from its closing price the previous day, the value of the 5x DLC will move by 5%

- designed to be traded over short periods of time, usually traded on an intra-day basis

- long and short DLC available to trade both rising and falling markets

- will never lose more than your initial investment


How to Trade DLC

Interactive Broker Trader Workstation (TWS) API Set Up

Interactive Brokers Trader Workstation (TWS) is comprehensive enough for my investment management and research. However, for curiosity sake I decided to try out their API software to see how far it can take me. If you simply want a fuss free method, please check out my post here on Alpha Vantage Excel Add-in. Please not that I did not subscribe to Interactive Brokers market data services hence there will be limitation on the functions available on their API calls. 

Allow me to digress, they do offer FREE Research and News Services on their TWS platform for users to access. However, there is a monthly fee for viewing real time quotes and premium newswires. Hence stated otherwise, the market data you are viewing are delayed quotes. Fees differ according to the stock exchange and type of user (Pro or Non- Pro). For the most of us, if you are reading this, you are most likely a Non-Pro user. 

Source: Interactive Brokers website
"Non-Professional - is any natural person and cannot be a corporation, trust, organization, institution or partnership account."

Order Types on Interactive Broker

Preface as seen on Interactive Brokers Quick Trade Platform

Source
https://www.interactivebrokers.com/en/software/tws/basicordertypestop.htm