Deutsche Boerse New DAX Indices Target Falling And Rising Prices

Deutsche Brse has expanded its offering in the area of DAXplus 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

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Deutsche Brse has expanded its offering in the area of DAXplus 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 LevDAX and ShortDAX Deutsche Brse 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 Brse has launched two new indices for investments in falling prices to enhance the ShortDAX: ShortDAX x2 and ShortDAX x4. Just as with the LevDAX, the x in the name stands for the leverage: 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 ShortDAX is directly opposed to that of the DAX index, i.e. if the DAX rises by 5%, the ShortDAX falls by 5%, 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.

L.D.

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