Cubase with MOTU interfaces Direct Monitoring

I am really confused with set up using my MOTU Ultralite.

I am using only VST instruments.

If I am right, if I enable “Direct Monitoring” then the FX I put on VST tracks won’t be heard, but I will have less latency.

If I turn “Direct Monitoring” off, then the sound I hear is processed by the PC, so my FX on VST tracks will be heard.

Am I understanding correctly? Does having Direcot MOnitoring ON, affect the final mixdown at all …? I just don’t quite get the logic …

Direct monitoring simply interrupts the audio signal from an input (mic or instrument…not midi) on your interface and pipes it straight to the output so you hear it without delay caused by it going via the computer.

VST instruments are already in the computer so direct monitoring doesn’t affect them in any way.

Ahaa, thank you for the tip.