Leveraged and reverse products
2022-05-23
Leveraged and reverse products are derivatives traded at the exchange. Though they are in the structure of a fund, different from traditional funds, such products are designed for fleeting transactions or hedging. Therefore, it is not recommended to hold them for longer than one day.

Leveraged products are designated to offer a single-day return equivalent to specific times of the relevant index performance. The upper limit of the leverage times is twice (2x). Reverse products are designated to offer a single-day return opposite to specific times of the relevant index performance. The upper limit of the leverage times is twice (-2x) as well. If the relevant index rises, the return on the relevant reverse product will fall, and vice versa.

It is not recommended to hold leveraged and reverse products for longer than one day, because the returns of relevant products after some time within the period might deviate or become uncorrelated with the return of specific times of the relevant index.