We would like to caution our clients that Leveraged ETFs i.e. leveraged Proshares, Direxion, Direx, Velocity ETFs/ETNs are essentially derivatives traded as equities.

As their liquidity is dependent on their issuer and market makers, they are untested in the current volatile market conditions. Hence we will be taking the following precautionary credit control steps.

For all new positions of the above-named instruments, we will grant the following trading limits (where applicable):

a) Client may trade without collateral in positions of the above instruments for up to US$50,000.

b) Any position greater than US$50,000 will require cash collateral upfront from the first dollar.

c) The above applies to new open positions and clients may close their existing positions without limitation.

Enclosed is the List of Leveraged ETFs on US Markets for your reference.
Please do not hesitate to contact our Trading Representative if you require any assistance.