OREANDA-NEWS. Deutsche Börse today expanded its DAXplus strategy index offering with the launch of four new ShortDAX and LevDAX indices. The ShortDAX x9 and x10 indices and LevDAX x9 and x10 indices meet the needs of sophisticated market participants, based on different evaluations of market conditions, who are seeking access to leveraged investments in the DAX when prices rise or fall.

As with the existing ShortDAX indices, the new ShortDAX x9 and ShortDAX x10 indices allow investors to participate in the performance of falling share prices. The performance of each index is directly inverse to the performance of the DAX depending on its leverage factor, which is reflected by the “x” in the index name. For example, when the DAX falls by 5%, the ShortDAX x9 rises by 45%, and vice versa. 

In addition to inverse DAX performance, the ShortDAX indices contain interest payments resulting from the investment strategy in proportion to the overnight rate. Interest accrues in the same amount for the investment volume as well as for the funds received from short-selling.

The new LevDAX x9 and LevDAX x10 are directly linked to the performance of DAX and proportionate to its leverage factor. For example, the LevDAX x9 gains nine times the value of the DAX.

All leveraged indices have a protective mechanism in order to prevent a total loss. If an index loses more than 50 percent at a certain time on any one day, the leverage factor will be adjusted ad-hoc and the calculation continued based on the last DAX level prior to the defined point in time. The new strategy indices provide a simple method of above-average participation in market movements. 

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Deutsche Börse is one of the world’s leading data and technology service providers for the securities industry with a product and service offering for issuers, investors, intermediaries and data vendors. The Group covers the entire value chain from trading, through clearing, to settlement and securities custody. Deutsche Börse Market Data + Services encompasses the Group’s extensive market data offering and external technology and connectivity services. The product and service range includes real-time and historical data from the Group's trading venues Eurex and Xetra as well as from cooperation partners. It also includes exclusive trading signals independent of its platforms such as economic indicators or macroeconomic news, reference data for more than 1,000,000 securities, approximately 10,825 indices including the STOXX and DAX index families, superior capital market infrastructure, and reliable connectivity services.