Definitions
In plain terms
A two-times daily index aims for twice each day's underlying return, not twice the return over every longer holding period.
Technical
The methodology defines underlying return variant, leverage multiple, reset time, financing and cash legs, fees, holidays, disruption rules, compounding, and floor or termination controls.
Scope
Longer-period performance is path dependent and can differ greatly from leverage times the underlying cumulative return.
Examples
- A governed methodology records leveraged index with its source, cutoff, units, parameters, and effective version.
Common misconceptions
- Leveraged Index does not have one universal implementation without the declared methodology, data basis, and constraints.
Concept relationships
Prerequisites
Contrasts with
Where this concept is used
Evidence and governance
- S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-batch-004
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.