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  • Is DLC only for day trading? How do investors utilise DLCs?

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    Some investors utilise DLCs for day trading, where they may enter the market in the morning and exit in the afternoon, or buy and sell DLCs within hours. Although DLC is a short term trading product, it is not restricted to day trade only. SG generally does not recommend investors to hold DLCs for long periods, say a couple of months or even a year, without understanding the risks involved. Performances of the Underlying Asset and the DLCs are reset at the end of each trading day. 

    Short DLC can be used as hedging tool to help protect the investment portfolio. DLC also enables investors to use a smaller amount of capital but reaching high exposure to the underlying assets.