First introduced in July 2017, I felt that DLC hasn’t been well understood by the market for its use and purpose other than being perceived as yet another leveraged product to stay away from. Leveraged products need not be risky when controlled properly and used appropriately. It’s actually an opportunity for retail investors to act and benefit like a hedge fund.
What is DLC and How It Works?
DLCs are listed on SGX like a stock, and they are also traded like a stock. If you have a stock broker account that can trade say any single stock share, you can use the same broker account to trade DLC too. Unlike some other leveraged investment products, there are no margin requirement for DLCs.
The idea of hedging by retail investor is almost unheard of, and some people don’t want to go through the hassle of setting up a CFD trading account